Correlation Between Amot Investments and Reit 1
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Reit 1 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 Reit 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Reit 1, you can compare the effects of market volatilities on Amot Investments and Reit 1 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 Reit 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Reit 1.
Diversification Opportunities for Amot Investments and Reit 1
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amot and Reit is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Reit 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reit 1 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 Reit 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reit 1 has no effect on the direction of Amot Investments i.e., Amot Investments and Reit 1 go up and down completely randomly.
Pair Corralation between Amot Investments and Reit 1
Assuming the 90 days trading horizon Amot Investments is expected to generate 1.39 times less return on investment than Reit 1. But when comparing it to its historical volatility, Amot Investments is 1.06 times less risky than Reit 1. It trades about 0.03 of its potential returns per unit of risk. Reit 1 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 147,212 in Reit 1 on November 5, 2024 and sell it today you would earn a total of 43,288 from holding Reit 1 or generate 29.41% 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. Reit 1
Performance |
| Timeline |
| Amot Investments |
| Reit 1 |
Amot Investments and Reit 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Reit 1
The main advantage of trading using opposite Amot Investments and Reit 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Reit 1 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 Reit 1 will offset losses from the drop in Reit 1'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 |
| Reit 1 vs. Sella Real Estate | Reit 1 vs. Alony Hetz Properties | Reit 1 vs. Azrieli Group | Reit 1 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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