Correlation Between Amot Investments and Discount Investment
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Discount Investment 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 Discount Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Discount Investment Corp, you can compare the effects of market volatilities on Amot Investments and Discount Investment 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 Discount Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Discount Investment.
Diversification Opportunities for Amot Investments and Discount Investment
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amot and Discount is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Discount Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Discount Investment Corp 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 Discount Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Discount Investment Corp has no effect on the direction of Amot Investments i.e., Amot Investments and Discount Investment go up and down completely randomly.
Pair Corralation between Amot Investments and Discount Investment
Assuming the 90 days trading horizon Amot Investments is expected to generate 1.11 times more return on investment than Discount Investment. However, Amot Investments is 1.11 times more volatile than Discount Investment Corp. It trades about 0.34 of its potential returns per unit of risk. Discount Investment Corp is currently generating about -0.4 per unit of risk. If you would invest 192,199 in Amot Investments on September 18, 2024 and sell it today you would earn a total of 16,101 from holding Amot Investments or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.44% |
| Values | Daily Returns |
Amot Investments vs. Discount Investment Corp
Performance |
| Timeline |
| Amot Investments |
| Discount Investment Corp |
Amot Investments and Discount Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Discount Investment
The main advantage of trading using opposite Amot Investments and Discount Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Discount Investment 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 Discount Investment will offset losses from the drop in Discount Investment'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 |
| Discount Investment vs. Aran Research and | Discount Investment vs. Al Bad Massuot Yitzhak | Discount Investment vs. Analyst IMS Investment | Discount Investment vs. Golan Plastic |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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