Correlation Between Amot Investments and Delek
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Delek 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 Delek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Delek Group, you can compare the effects of market volatilities on Amot Investments and Delek 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 Delek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Delek.
Diversification Opportunities for Amot Investments and Delek
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amot and Delek is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Delek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Group 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 Delek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Group has no effect on the direction of Amot Investments i.e., Amot Investments and Delek go up and down completely randomly.
Pair Corralation between Amot Investments and Delek
Assuming the 90 days trading horizon Amot Investments is expected to generate 7.54 times less return on investment than Delek. But when comparing it to its historical volatility, Amot Investments is 1.37 times less risky than Delek. It trades about 0.01 of its potential returns per unit of risk. Delek Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,521,492 in Delek Group on August 27, 2024 and sell it today you would earn a total of 1,164,508 from holding Delek Group or generate 33.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amot Investments vs. Delek Group
Performance |
| Timeline |
| Amot Investments |
| Delek Group |
Amot Investments and Delek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Delek
The main advantage of trading using opposite Amot Investments and Delek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Delek 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 Delek will offset losses from the drop in Delek's long position.| Amot Investments vs. Israel Canada | Amot Investments vs. Delek Group | Amot Investments vs. Shikun Binui | Amot Investments vs. Israel Discount Bank |
| Delek vs. Fattal 1998 Holdings | Delek vs. El Al Israel | Delek vs. Bank Leumi Le Israel | Delek vs. Teva Pharmaceutical Industries |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |