Correlation Between Amot Investments and Sarine Technologies
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Sarine Technologies 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 Sarine Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Sarine Technologies, you can compare the effects of market volatilities on Amot Investments and Sarine Technologies 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 Sarine Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Sarine Technologies.
Diversification Opportunities for Amot Investments and Sarine Technologies
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amot and Sarine is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Sarine Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sarine Technologies 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 Sarine Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sarine Technologies has no effect on the direction of Amot Investments i.e., Amot Investments and Sarine Technologies go up and down completely randomly.
Pair Corralation between Amot Investments and Sarine Technologies
Assuming the 90 days trading horizon Amot Investments is expected to generate 0.51 times more return on investment than Sarine Technologies. However, Amot Investments is 1.97 times less risky than Sarine Technologies. It trades about -0.1 of its potential returns per unit of risk. Sarine Technologies is currently generating about -0.1 per unit of risk. If you would invest 214,100 in Amot Investments on November 4, 2024 and sell it today you would lose (4,500) from holding Amot Investments or give up 2.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amot Investments vs. Sarine Technologies
Performance |
| Timeline |
| Amot Investments |
| Sarine Technologies |
Amot Investments and Sarine Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Sarine Technologies
The main advantage of trading using opposite Amot Investments and Sarine Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Sarine Technologies 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 Sarine Technologies will offset losses from the drop in Sarine Technologies' long position.| Amot Investments vs. Alony Hetz Properties | Amot Investments vs. Azrieli Group | Amot Investments vs. Melisron | Amot Investments vs. Bank Leumi Le Israel |
| Sarine Technologies vs. Multi Retail Group | Sarine Technologies vs. Orbit Technologies | Sarine Technologies vs. Unicorn Technologies | Sarine Technologies vs. Computer Direct |
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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