Correlation Between Amot Investments and Blender Financial
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Blender Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Amot Investments and Blender Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Blender Financial Technologies, you can compare the effects of market volatilities on Amot Investments and Blender Financial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Amot Investments with a short position of Blender Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Blender Financial.
Diversification Opportunities for Amot Investments and Blender Financial
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amot and Blender is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Blender Financial Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blender Financial and Amot Investments is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Amot Investments are associated (or correlated) with Blender Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blender Financial has no effect on the direction of Amot Investments i.e., Amot Investments and Blender Financial go up and down completely randomly.
Pair Corralation between Amot Investments and Blender Financial
Assuming the 90 days trading horizon Amot Investments is expected to generate 8.61 times less return on investment than Blender Financial. But when comparing it to its historical volatility, Amot Investments is 2.03 times less risky than Blender Financial. It trades about 0.06 of its potential returns per unit of risk. Blender Financial Technologies is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 36,030 in Blender Financial Technologies on November 3, 2024 and sell it today you would earn a total of 5,260 from holding Blender Financial Technologies or generate 14.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amot Investments vs. Blender Financial Technologies
Performance |
| Timeline |
| Amot Investments |
| Blender Financial |
Amot Investments and Blender Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Blender Financial
The main advantage of trading using opposite Amot Investments and Blender Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Blender Financial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Blender Financial will offset losses from the drop in Blender Financial's long position.| Amot Investments vs. Alony Hetz Properties | Amot Investments vs. Azrieli Group | Amot Investments vs. Melisron | Amot Investments vs. Bank Leumi Le Israel |
| Blender Financial vs. YD More Investments | Blender Financial vs. Oron Group Investments | Blender Financial vs. Magic Software Enterprises | Blender Financial vs. Discount Investment Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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