Correlation Between Ratio Oil and Amot Investments
Can any of the company-specific risk be diversified away by investing in both Ratio Oil 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 Ratio Oil and Amot Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ratio Oil Explorations and Amot Investments, you can compare the effects of market volatilities on Ratio Oil 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 Ratio Oil with a short position of Amot Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratio Oil and Amot Investments.
Diversification Opportunities for Ratio Oil and Amot Investments
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ratio and Amot is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ratio Oil Explorations and Amot Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amot Investments and Ratio Oil 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 Ratio Oil Explorations 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 Ratio Oil i.e., Ratio Oil and Amot Investments go up and down completely randomly.
Pair Corralation between Ratio Oil and Amot Investments
Assuming the 90 days trading horizon Ratio Oil is expected to generate 1.38 times less return on investment than Amot Investments. In addition to that, Ratio Oil is 1.07 times more volatile than Amot Investments. It trades about 0.35 of its total potential returns per unit of risk. Amot Investments is currently generating about 0.52 per unit of volatility. If you would invest 158,670 in Amot Investments on August 29, 2024 and sell it today you would earn a total of 34,830 from holding Amot Investments or generate 21.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 96.55% |
| Values | Daily Returns |
Ratio Oil Explorations vs. Amot Investments
Performance |
| Timeline |
| Ratio Oil Explorations |
| Amot Investments |
Ratio Oil and Amot Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ratio Oil and Amot Investments
The main advantage of trading using opposite Ratio Oil and Amot Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratio Oil 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.| Ratio Oil vs. Nice | Ratio Oil vs. The Gold Bond | Ratio Oil vs. Bank Leumi Le Israel | Ratio Oil vs. ICL Israel Chemicals |
| Amot Investments vs. Israel Canada | Amot Investments vs. Azrieli Group | Amot Investments vs. Delek Group | Amot Investments vs. Israel Discount Bank |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |