Correlation Between Amot Investments and Mivne Real
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Mivne Real 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 Mivne Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Mivne Real Estate, you can compare the effects of market volatilities on Amot Investments and Mivne Real 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 Mivne Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Mivne Real.
Diversification Opportunities for Amot Investments and Mivne Real
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amot and Mivne is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Mivne Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mivne Real Estate 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 Mivne Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mivne Real Estate has no effect on the direction of Amot Investments i.e., Amot Investments and Mivne Real go up and down completely randomly.
Pair Corralation between Amot Investments and Mivne Real
Assuming the 90 days trading horizon Amot Investments is expected to generate 1.09 times less return on investment than Mivne Real. In addition to that, Amot Investments is 1.04 times more volatile than Mivne Real Estate. It trades about 0.04 of its total potential returns per unit of risk. Mivne Real Estate is currently generating about 0.04 per unit of volatility. If you would invest 97,980 in Mivne Real Estate on August 29, 2024 and sell it today you would earn a total of 10,720 from holding Mivne Real Estate or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.36% |
| Values | Daily Returns |
Amot Investments vs. Mivne Real Estate
Performance |
| Timeline |
| Amot Investments |
| Mivne Real Estate |
Amot Investments and Mivne Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Mivne Real
The main advantage of trading using opposite Amot Investments and Mivne Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Mivne Real 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 Mivne Real will offset losses from the drop in Mivne Real's long position.| Amot Investments vs. Israel Canada | Amot Investments vs. Azrieli Group | Amot Investments vs. Delek Group | Amot Investments vs. Israel Discount Bank |
| Mivne Real vs. Israel Canada | Mivne Real vs. Azrieli Group | Mivne Real vs. Delek Group | Mivne Real vs. Israel Discount Bank |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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