Correlation Between Aura Investments and Amir Marketing
Can any of the company-specific risk be diversified away by investing in both Aura Investments and Amir Marketing 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 Aura Investments and Amir Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aura Investments and Amir Marketing and, you can compare the effects of market volatilities on Aura Investments and Amir Marketing 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 Aura Investments with a short position of Amir Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aura Investments and Amir Marketing.
Diversification Opportunities for Aura Investments and Amir Marketing
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aura and Amir is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Aura Investments and Amir Marketing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amir Marketing and Aura 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 Aura Investments are associated (or correlated) with Amir Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amir Marketing has no effect on the direction of Aura Investments i.e., Aura Investments and Amir Marketing go up and down completely randomly.
Pair Corralation between Aura Investments and Amir Marketing
Assuming the 90 days trading horizon Aura Investments is expected to generate 1.06 times less return on investment than Amir Marketing. In addition to that, Aura Investments is 1.11 times more volatile than Amir Marketing and. It trades about 0.08 of its total potential returns per unit of risk. Amir Marketing and is currently generating about 0.09 per unit of volatility. If you would invest 240,000 in Amir Marketing and on September 3, 2024 and sell it today you would earn a total of 57,300 from holding Amir Marketing and or generate 23.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aura Investments vs. Amir Marketing and
Performance |
| Timeline |
| Aura Investments |
| Amir Marketing |
Aura Investments and Amir Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aura Investments and Amir Marketing
The main advantage of trading using opposite Aura Investments and Amir Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aura Investments position performs unexpectedly, Amir Marketing 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 Amir Marketing will offset losses from the drop in Amir Marketing's long position.| Aura Investments vs. Israel Canada | Aura Investments vs. Azrieli Group | Aura Investments vs. Delek Group | Aura Investments vs. Shikun Binui |
| Amir Marketing vs. EN Shoham Business | Amir Marketing vs. Accel Solutions Group | Amir Marketing vs. Mivtach Shamir | Amir Marketing vs. Rani Zim Shopping |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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