Correlation Between Multi Retail and Amanet Management
Can any of the company-specific risk be diversified away by investing in both Multi Retail and Amanet Management 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 Multi Retail and Amanet Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Retail Group and Amanet Management Systems, you can compare the effects of market volatilities on Multi Retail and Amanet Management 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 Multi Retail with a short position of Amanet Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Retail and Amanet Management.
Diversification Opportunities for Multi Retail and Amanet Management
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Multi and Amanet is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Multi Retail Group and Amanet Management Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amanet Management Systems and Multi Retail 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 Multi Retail Group are associated (or correlated) with Amanet Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amanet Management Systems has no effect on the direction of Multi Retail i.e., Multi Retail and Amanet Management go up and down completely randomly.
Pair Corralation between Multi Retail and Amanet Management
Assuming the 90 days trading horizon Multi Retail Group is expected to generate 1.88 times more return on investment than Amanet Management. However, Multi Retail is 1.88 times more volatile than Amanet Management Systems. It trades about 0.13 of its potential returns per unit of risk. Amanet Management Systems is currently generating about 0.14 per unit of risk. If you would invest 101,300 in Multi Retail Group on August 29, 2024 and sell it today you would earn a total of 6,400 from holding Multi Retail Group or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Retail Group vs. Amanet Management Systems
Performance |
| Timeline |
| Multi Retail Group |
| Amanet Management Systems |
Multi Retail and Amanet Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Retail and Amanet Management
The main advantage of trading using opposite Multi Retail and Amanet Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Retail position performs unexpectedly, Amanet Management 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 Amanet Management will offset losses from the drop in Amanet Management's long position.| Multi Retail vs. Opal Balance | Multi Retail vs. B Communications | Multi Retail vs. Holmes Place International | Multi Retail vs. Nova |
| Amanet Management vs. Ormat Technologies | Amanet Management vs. Multi Retail Group | Amanet Management vs. Nova | Amanet Management vs. B Communications |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |