Correlation Between Amot Investments and Trendline
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Trendline 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 Trendline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Trendline, you can compare the effects of market volatilities on Amot Investments and Trendline 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 Trendline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Trendline.
Diversification Opportunities for Amot Investments and Trendline
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amot and Trendline is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Trendline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trendline 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 Trendline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trendline has no effect on the direction of Amot Investments i.e., Amot Investments and Trendline go up and down completely randomly.
Pair Corralation between Amot Investments and Trendline
Assuming the 90 days trading horizon Amot Investments is expected to generate 0.52 times more return on investment than Trendline. However, Amot Investments is 1.93 times less risky than Trendline. It trades about 0.01 of its potential returns per unit of risk. Trendline is currently generating about -0.02 per unit of risk. If you would invest 198,161 in Amot Investments on September 3, 2024 and sell it today you would earn a total of 1,939 from holding Amot Investments or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amot Investments vs. Trendline
Performance |
| Timeline |
| Amot Investments |
| Trendline |
Amot Investments and Trendline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Trendline
The main advantage of trading using opposite Amot Investments and Trendline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Trendline 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 Trendline will offset losses from the drop in Trendline'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 |
| Trendline vs. Discount Investment Corp | Trendline vs. Meitav Dash Investments | Trendline vs. IBI Mutual Funds | Trendline 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 CEOs Directory module to screen CEOs from public companies around the world.
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