Correlation Between Amot Investments and Pluristem
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Pluristem 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 Pluristem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Pluristem, you can compare the effects of market volatilities on Amot Investments and Pluristem 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 Pluristem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Pluristem.
Diversification Opportunities for Amot Investments and Pluristem
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amot and Pluristem is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Pluristem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pluristem 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 Pluristem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pluristem has no effect on the direction of Amot Investments i.e., Amot Investments and Pluristem go up and down completely randomly.
Pair Corralation between Amot Investments and Pluristem
Assuming the 90 days trading horizon Amot Investments is expected to generate 86.55 times less return on investment than Pluristem. But when comparing it to its historical volatility, Amot Investments is 18.59 times less risky than Pluristem. It trades about 0.01 of its potential returns per unit of risk. Pluristem is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 32,170 in Pluristem on September 3, 2024 and sell it today you would earn a total of 168,830 from holding Pluristem or generate 524.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Amot Investments vs. Pluristem
Performance |
| Timeline |
| Amot Investments |
| Pluristem |
Amot Investments and Pluristem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Pluristem
The main advantage of trading using opposite Amot Investments and Pluristem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Pluristem 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 Pluristem will offset losses from the drop in Pluristem's long position.| Amot Investments vs. Nextage Therapeutics | Amot Investments vs. Israel China Biotechnology | Amot Investments vs. The Gold Bond | Amot Investments vs. Overseas Commerce |
| Pluristem vs. Israel China Biotechnology | Pluristem vs. Amot Investments | Pluristem vs. Clal Biotechnology Industries | Pluristem vs. Ormat Technologies |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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