Correlation Between Amot Investments and Melisron
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Melisron 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 Melisron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Melisron, you can compare the effects of market volatilities on Amot Investments and Melisron 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 Melisron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Melisron.
Diversification Opportunities for Amot Investments and Melisron
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amot and Melisron is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Melisron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Melisron 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 Melisron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Melisron has no effect on the direction of Amot Investments i.e., Amot Investments and Melisron go up and down completely randomly.
Pair Corralation between Amot Investments and Melisron
Assuming the 90 days trading horizon Amot Investments is expected to generate 0.91 times more return on investment than Melisron. However, Amot Investments is 1.1 times less risky than Melisron. It trades about 0.65 of its potential returns per unit of risk. Melisron is currently generating about 0.24 per unit of risk. If you would invest 167,500 in Amot Investments on August 24, 2024 and sell it today you would earn a total of 28,500 from holding Amot Investments or generate 17.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amot Investments vs. Melisron
Performance |
| Timeline |
| Amot Investments |
| Melisron |
Amot Investments and Melisron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Melisron
The main advantage of trading using opposite Amot Investments and Melisron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Melisron 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 Melisron will offset losses from the drop in Melisron'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 |
| Melisron vs. Israel Canada | Melisron vs. Azrieli Group | Melisron vs. Delek Group | Melisron vs. Shikun Binui |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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