Correlation Between Amot Investments and Nextcom
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Nextcom 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 Nextcom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Nextcom, you can compare the effects of market volatilities on Amot Investments and Nextcom 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 Nextcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Nextcom.
Diversification Opportunities for Amot Investments and Nextcom
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amot and Nextcom is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Nextcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextcom 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 Nextcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextcom has no effect on the direction of Amot Investments i.e., Amot Investments and Nextcom go up and down completely randomly.
Pair Corralation between Amot Investments and Nextcom
Assuming the 90 days trading horizon Amot Investments is expected to generate 0.56 times more return on investment than Nextcom. However, Amot Investments is 1.8 times less risky than Nextcom. It trades about 0.72 of its potential returns per unit of risk. Nextcom is currently generating about 0.16 per unit of risk. If you would invest 165,178 in Amot Investments on August 28, 2024 and sell it today you would earn a total of 30,822 from holding Amot Investments or generate 18.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amot Investments vs. Nextcom
Performance |
| Timeline |
| Amot Investments |
| Nextcom |
Amot Investments and Nextcom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Nextcom
The main advantage of trading using opposite Amot Investments and Nextcom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Nextcom 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 Nextcom will offset losses from the drop in Nextcom's long position.| Amot Investments vs. Israel Canada | Amot Investments vs. Delek Group | Amot Investments vs. Shikun Binui | Amot Investments vs. Israel Discount Bank |
| Nextcom vs. Bank Leumi Le Israel | Nextcom vs. Teva Pharmaceutical Industries | Nextcom vs. Bank Hapoalim | Nextcom vs. Elbit Systems |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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