Correlation Between Amot Investments and Israel Land
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Israel Land 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 Israel Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Israel Land Development, you can compare the effects of market volatilities on Amot Investments and Israel Land 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 Israel Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Israel Land.
Diversification Opportunities for Amot Investments and Israel Land
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amot and Israel is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Israel Land Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Land Development 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 Israel Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Land Development has no effect on the direction of Amot Investments i.e., Amot Investments and Israel Land go up and down completely randomly.
Pair Corralation between Amot Investments and Israel Land
Assuming the 90 days trading horizon Amot Investments is expected to generate 0.92 times more return on investment than Israel Land. However, Amot Investments is 1.09 times less risky than Israel Land. It trades about 0.16 of its potential returns per unit of risk. Israel Land Development is currently generating about 0.07 per unit of risk. If you would invest 149,012 in Amot Investments on September 1, 2024 and sell it today you would earn a total of 51,088 from holding Amot Investments or generate 34.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amot Investments vs. Israel Land Development
Performance |
| Timeline |
| Amot Investments |
| Israel Land Development |
Amot Investments and Israel Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Israel Land
The main advantage of trading using opposite Amot Investments and Israel Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Israel Land 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 Israel Land will offset losses from the drop in Israel Land's long position.| Amot Investments vs. Fattal 1998 Holdings | Amot Investments vs. Azrieli Group | Amot Investments vs. Clal Insurance Enterprises |
| Israel Land vs. Alony Hetz Properties | Israel Land vs. Melisron | Israel Land vs. Azrieli Group | Israel Land vs. Amot Investments |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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