Correlation Between Equital and Amot Investments
Can any of the company-specific risk be diversified away by investing in both Equital 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 Equital and Amot Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equital and Amot Investments, you can compare the effects of market volatilities on Equital 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 Equital with a short position of Amot Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equital and Amot Investments.
Diversification Opportunities for Equital and Amot Investments
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Equital and Amot is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Equital and Amot Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amot Investments and Equital 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 Equital 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 Equital i.e., Equital and Amot Investments go up and down completely randomly.
Pair Corralation between Equital and Amot Investments
Assuming the 90 days trading horizon Equital is expected to generate 1.71 times less return on investment than Amot Investments. In addition to that, Equital is 1.81 times more volatile than Amot Investments. It trades about 0.06 of its total potential returns per unit of risk. Amot Investments is currently generating about 0.2 per unit of volatility. If you would invest 205,100 in Amot Investments on October 26, 2024 and sell it today you would earn a total of 8,900 from holding Amot Investments or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equital vs. Amot Investments
Performance |
| Timeline |
| Equital |
| Amot Investments |
Equital and Amot Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equital and Amot Investments
The main advantage of trading using opposite Equital and Amot Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equital 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.| Equital vs. Airport City | Equital vs. Naphtha | Equital vs. Menora Miv Hld | Equital vs. Delek Automotive Systems |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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