Correlation Between Amot Investments and Photomyne
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Photomyne 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 Photomyne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Photomyne, you can compare the effects of market volatilities on Amot Investments and Photomyne 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 Photomyne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Photomyne.
Diversification Opportunities for Amot Investments and Photomyne
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amot and Photomyne is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Photomyne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photomyne 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 Photomyne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photomyne has no effect on the direction of Amot Investments i.e., Amot Investments and Photomyne go up and down completely randomly.
Pair Corralation between Amot Investments and Photomyne
Assuming the 90 days trading horizon Amot Investments is expected to generate 1.39 times more return on investment than Photomyne. However, Amot Investments is 1.39 times more volatile than Photomyne. It trades about 0.65 of its potential returns per unit of risk. Photomyne is currently generating about -0.16 per unit of risk. If you would invest 167,500 in Amot Investments on August 27, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amot Investments vs. Photomyne
Performance |
| Timeline |
| Amot Investments |
| Photomyne |
Amot Investments and Photomyne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Photomyne
The main advantage of trading using opposite Amot Investments and Photomyne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Photomyne 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 Photomyne will offset losses from the drop in Photomyne's long position.| Amot Investments vs. Israel Canada | Amot Investments vs. Delek Group | Amot Investments vs. Shikun Binui | Amot Investments vs. Israel Discount Bank |
| Photomyne vs. Elbit Medical Technologies | Photomyne vs. Skyline Investments | Photomyne vs. Migdal Insurance | Photomyne vs. Harel Insurance 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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