Correlation Between Seach Medical and Amot Investments
Can any of the company-specific risk be diversified away by investing in both Seach Medical 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 Seach Medical and Amot Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seach Medical Group and Amot Investments, you can compare the effects of market volatilities on Seach Medical 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 Seach Medical with a short position of Amot Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seach Medical and Amot Investments.
Diversification Opportunities for Seach Medical and Amot Investments
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Seach and Amot is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Seach Medical Group and Amot Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amot Investments and Seach Medical 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 Seach Medical Group 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 Seach Medical i.e., Seach Medical and Amot Investments go up and down completely randomly.
Pair Corralation between Seach Medical and Amot Investments
Assuming the 90 days trading horizon Seach Medical is expected to generate 7.08 times less return on investment than Amot Investments. In addition to that, Seach Medical is 1.44 times more volatile than Amot Investments. It trades about 0.05 of its total potential returns per unit of risk. Amot Investments is currently generating about 0.49 per unit of volatility. If you would invest 179,773 in Amot Investments on September 1, 2024 and sell it today you would earn a total of 20,327 from holding Amot Investments or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seach Medical Group vs. Amot Investments
Performance |
| Timeline |
| Seach Medical Group |
| Amot Investments |
Seach Medical and Amot Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seach Medical and Amot Investments
The main advantage of trading using opposite Seach Medical and Amot Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seach Medical 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.| Seach Medical vs. Nextgen | Seach Medical vs. Gencell | Seach Medical vs. Bonus Biogroup | Seach Medical vs. Intelicanna |
| Amot Investments vs. Fattal 1998 Holdings | Amot Investments vs. Azrieli Group | Amot Investments vs. Clal Insurance Enterprises |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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