Correlation Between Shikun Binui and Amot Investments
Can any of the company-specific risk be diversified away by investing in both Shikun Binui 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 Shikun Binui and Amot Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shikun Binui and Amot Investments, you can compare the effects of market volatilities on Shikun Binui 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 Shikun Binui with a short position of Amot Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shikun Binui and Amot Investments.
Diversification Opportunities for Shikun Binui and Amot Investments
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shikun and Amot is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Shikun Binui and Amot Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amot Investments and Shikun Binui 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 Shikun Binui 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 Shikun Binui i.e., Shikun Binui and Amot Investments go up and down completely randomly.
Pair Corralation between Shikun Binui and Amot Investments
Assuming the 90 days trading horizon Shikun Binui is expected to generate 0.96 times more return on investment than Amot Investments. However, Shikun Binui is 1.04 times less risky than Amot Investments. It trades about 0.72 of its potential returns per unit of risk. Amot Investments is currently generating about 0.65 per unit of risk. If you would invest 91,300 in Shikun Binui on August 25, 2024 and sell it today you would earn a total of 16,400 from holding Shikun Binui or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shikun Binui vs. Amot Investments
Performance |
| Timeline |
| Shikun Binui |
| Amot Investments |
Shikun Binui and Amot Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shikun Binui and Amot Investments
The main advantage of trading using opposite Shikun Binui and Amot Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shikun Binui 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.| Shikun Binui vs. Israel Discount Bank | Shikun Binui vs. Bezeq Israeli Telecommunication | Shikun Binui vs. Azrieli Group | Shikun Binui vs. Bank Hapoalim |
| Amot Investments vs. Israel Canada | Amot Investments vs. Azrieli Group | Amot Investments vs. Delek Group | Amot Investments vs. Shikun Binui |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |