Correlation Between Netz Hotels and Amanet Management
Can any of the company-specific risk be diversified away by investing in both Netz Hotels 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 Netz Hotels and Amanet Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netz Hotels and Amanet Management Systems, you can compare the effects of market volatilities on Netz Hotels 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 Netz Hotels with a short position of Amanet Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netz Hotels and Amanet Management.
Diversification Opportunities for Netz Hotels and Amanet Management
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Netz and Amanet is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Netz Hotels 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 Netz Hotels 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 Netz Hotels 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 Netz Hotels i.e., Netz Hotels and Amanet Management go up and down completely randomly.
Pair Corralation between Netz Hotels and Amanet Management
Assuming the 90 days trading horizon Netz Hotels is expected to generate 2.12 times more return on investment than Amanet Management. However, Netz Hotels is 2.12 times more volatile than Amanet Management Systems. It trades about 0.34 of its potential returns per unit of risk. Amanet Management Systems is currently generating about 0.2 per unit of risk. If you would invest 2,750 in Netz Hotels on August 31, 2024 and sell it today you would earn a total of 580.00 from holding Netz Hotels or generate 21.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netz Hotels vs. Amanet Management Systems
Performance |
| Timeline |
| Netz Hotels |
| Amanet Management Systems |
Netz Hotels and Amanet Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netz Hotels and Amanet Management
The main advantage of trading using opposite Netz Hotels and Amanet Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netz Hotels 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.| Netz Hotels vs. Direct Capital Investments | Netz Hotels vs. Brainsway | Netz Hotels vs. Mivne Real Estate | Netz Hotels vs. Photomyne |
| Amanet Management vs. Arad | Amanet Management vs. Alony Hetz Properties | Amanet Management vs. Danel | Amanet Management vs. Airport City |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |