Correlation Between Amot Investments and Savoreat
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Savoreat 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 Savoreat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Savoreat, you can compare the effects of market volatilities on Amot Investments and Savoreat 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 Savoreat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Savoreat.
Diversification Opportunities for Amot Investments and Savoreat
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amot and Savoreat is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Savoreat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savoreat 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 Savoreat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savoreat has no effect on the direction of Amot Investments i.e., Amot Investments and Savoreat go up and down completely randomly.
Pair Corralation between Amot Investments and Savoreat
Assuming the 90 days trading horizon Amot Investments is expected to generate 0.18 times more return on investment than Savoreat. However, Amot Investments is 5.6 times less risky than Savoreat. It trades about 0.63 of its potential returns per unit of risk. Savoreat is currently generating about -0.15 per unit of risk. If you would invest 165,178 in Amot Investments on August 29, 2024 and sell it today you would earn a total of 28,322 from holding Amot Investments or generate 17.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Amot Investments vs. Savoreat
Performance |
| Timeline |
| Amot Investments |
| Savoreat |
Amot Investments and Savoreat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Savoreat
The main advantage of trading using opposite Amot Investments and Savoreat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Savoreat 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 Savoreat will offset losses from the drop in Savoreat's long position.| Amot Investments vs. Israel Canada | Amot Investments vs. Azrieli Group | Amot Investments vs. Delek Group | Amot Investments vs. Israel Discount Bank |
| Savoreat vs. Isras Investment | Savoreat vs. Amot Investments | Savoreat vs. Feat Fund Investments | Savoreat vs. Opko Health |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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