Correlation Between Amir Marketing and Aura Investments
Can any of the company-specific risk be diversified away by investing in both Amir Marketing and Aura Investments 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 Amir Marketing and Aura Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amir Marketing and and Aura Investments, you can compare the effects of market volatilities on Amir Marketing and Aura Investments 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 Amir Marketing with a short position of Aura Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amir Marketing and Aura Investments.
Diversification Opportunities for Amir Marketing and Aura Investments
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amir and Aura is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Amir Marketing and and Aura Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aura Investments and Amir Marketing 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 Amir Marketing and are associated (or correlated) with Aura Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aura Investments has no effect on the direction of Amir Marketing i.e., Amir Marketing and Aura Investments go up and down completely randomly.
Pair Corralation between Amir Marketing and Aura Investments
Assuming the 90 days trading horizon Amir Marketing and is expected to generate 1.14 times more return on investment than Aura Investments. However, Amir Marketing is 1.14 times more volatile than Aura Investments. It trades about 0.11 of its potential returns per unit of risk. Aura Investments is currently generating about -0.09 per unit of risk. If you would invest 286,200 in Amir Marketing and on September 1, 2024 and sell it today you would earn a total of 11,100 from holding Amir Marketing and or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amir Marketing and vs. Aura Investments
Performance |
| Timeline |
| Amir Marketing |
| Aura Investments |
Amir Marketing and Aura Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amir Marketing and Aura Investments
The main advantage of trading using opposite Amir Marketing and Aura Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amir Marketing position performs unexpectedly, Aura Investments 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 Aura Investments will offset losses from the drop in Aura Investments' long position.| Amir Marketing vs. Together Startup Network | Amir Marketing vs. Intercure | Amir Marketing vs. Cannassure Therapeutics | Amir Marketing vs. ICL Israel Chemicals |
| Aura Investments vs. Israel Canada | Aura Investments vs. Azrieli Group | Aura Investments vs. Delek Group | Aura Investments vs. Shikun Binui |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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