Correlation Between Blue Square and Amot Investments
Can any of the company-specific risk be diversified away by investing in both Blue Square and Amot 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 Blue Square and Amot Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Square Real and Amot Investments, you can compare the effects of market volatilities on Blue Square and Amot 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 Blue Square with a short position of Amot Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Square and Amot Investments.
Diversification Opportunities for Blue Square and Amot Investments
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blue and Amot is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Blue Square Real and Amot Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amot Investments and Blue Square 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 Blue Square Real are associated (or correlated) with Amot Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amot Investments has no effect on the direction of Blue Square i.e., Blue Square and Amot Investments go up and down completely randomly.
Pair Corralation between Blue Square and Amot Investments
Assuming the 90 days trading horizon Blue Square Real is expected to generate 1.37 times more return on investment than Amot Investments. However, Blue Square is 1.37 times more volatile than Amot Investments. It trades about 0.08 of its potential returns per unit of risk. Amot Investments is currently generating about 0.03 per unit of risk. If you would invest 1,978,439 in Blue Square Real on September 2, 2024 and sell it today you would earn a total of 1,268,561 from holding Blue Square Real or generate 64.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Square Real vs. Amot Investments
Performance |
| Timeline |
| Blue Square Real |
| Amot Investments |
Blue Square and Amot Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Square and Amot Investments
The main advantage of trading using opposite Blue Square and Amot Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Square position performs unexpectedly, Amot 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 Amot Investments will offset losses from the drop in Amot Investments' long position.| Blue Square vs. Amot Investments | Blue Square vs. Big Shopping Centers | Blue Square vs. Alony Hetz Properties | Blue Square vs. Melisron |
| Amot Investments vs. Alony Hetz Properties | Amot Investments vs. Azrieli Group | Amot Investments vs. Melisron | Amot Investments vs. Bank Leumi Le Israel |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |