Correlation Between Automatic Bank and Amir Marketing
Can any of the company-specific risk be diversified away by investing in both Automatic Bank and Amir Marketing 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 Automatic Bank and Amir Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Automatic Bank Services and Amir Marketing and, you can compare the effects of market volatilities on Automatic Bank and Amir Marketing 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 Automatic Bank with a short position of Amir Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Automatic Bank and Amir Marketing.
Diversification Opportunities for Automatic Bank and Amir Marketing
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Automatic and Amir is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Automatic Bank Services and Amir Marketing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amir Marketing and Automatic Bank 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 Automatic Bank Services are associated (or correlated) with Amir Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amir Marketing has no effect on the direction of Automatic Bank i.e., Automatic Bank and Amir Marketing go up and down completely randomly.
Pair Corralation between Automatic Bank and Amir Marketing
Assuming the 90 days trading horizon Automatic Bank Services is expected to generate 0.98 times more return on investment than Amir Marketing. However, Automatic Bank Services is 1.02 times less risky than Amir Marketing. It trades about 0.22 of its potential returns per unit of risk. Amir Marketing and is currently generating about 0.06 per unit of risk. If you would invest 137,500 in Automatic Bank Services on September 2, 2024 and sell it today you would earn a total of 76,100 from holding Automatic Bank Services or generate 55.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Automatic Bank Services vs. Amir Marketing and
Performance |
| Timeline |
| Automatic Bank Services |
| Amir Marketing |
Automatic Bank and Amir Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Automatic Bank and Amir Marketing
The main advantage of trading using opposite Automatic Bank and Amir Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automatic Bank position performs unexpectedly, Amir Marketing 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 Amir Marketing will offset losses from the drop in Amir Marketing's long position.| Automatic Bank vs. Telsys | Automatic Bank vs. EN Shoham Business | Automatic Bank vs. Brainsway | Automatic Bank vs. Mivne Real Estate |
| Amir Marketing vs. Arad | Amir Marketing vs. Alony Hetz Properties | Amir Marketing vs. Airport City | Amir Marketing vs. Harel Insurance Investments |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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