Correlation Between Amot Investments and Cannabotech
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Cannabotech 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 Cannabotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Cannabotech, you can compare the effects of market volatilities on Amot Investments and Cannabotech 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 Cannabotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Cannabotech.
Diversification Opportunities for Amot Investments and Cannabotech
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amot and Cannabotech is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Cannabotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabotech 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 Cannabotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabotech has no effect on the direction of Amot Investments i.e., Amot Investments and Cannabotech go up and down completely randomly.
Pair Corralation between Amot Investments and Cannabotech
Assuming the 90 days trading horizon Amot Investments is expected to generate 0.16 times more return on investment than Cannabotech. However, Amot Investments is 6.28 times less risky than Cannabotech. It trades about 0.06 of its potential returns per unit of risk. Cannabotech is currently generating about -0.03 per unit of risk. If you would invest 174,680 in Amot Investments on November 3, 2024 and sell it today you would earn a total of 34,920 from holding Amot Investments or generate 19.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amot Investments vs. Cannabotech
Performance |
| Timeline |
| Amot Investments |
| Cannabotech |
Amot Investments and Cannabotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Cannabotech
The main advantage of trading using opposite Amot Investments and Cannabotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Cannabotech 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 Cannabotech will offset losses from the drop in Cannabotech'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 |
| Cannabotech vs. YD More Investments | Cannabotech vs. Millennium Food Tech LP | Cannabotech vs. Batm Advanced Communications | Cannabotech vs. Arad Investment Industrial |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |