Correlation Between Amanet Management and Axilion Smart

Can any of the company-specific risk be diversified away by investing in both Amanet Management and Axilion Smart 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 Amanet Management and Axilion Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amanet Management Systems and Axilion Smart Mobility, you can compare the effects of market volatilities on Amanet Management and Axilion Smart 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 Amanet Management with a short position of Axilion Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Axilion Smart.

Diversification Opportunities for Amanet Management and Axilion Smart

-0.71

Correlation Coefficient

Amanet Management  Axilion Smart

Pay attention - limited upside

The 3 months correlation between Amanet and Axilion is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Axilion Smart Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axilion Smart Mobility and Amanet Management 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 Amanet Management Systems are associated (or correlated) with Axilion Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axilion Smart Mobility has no effect on the direction of Amanet Management i.e., Amanet Management and Axilion Smart go up and down completely randomly.

Pair Corralation between Amanet Management and Axilion Smart

Assuming the 90 days trading horizon Amanet Management Systems is expected to generate 0.69 times more return on investment than Axilion Smart. However, Amanet Management Systems is 1.45 times less risky than Axilion Smart. It trades about 0.08 of its potential returns per unit of risk. Axilion Smart Mobility is currently generating about -0.27 per unit of risk. If you would invest  162,600  in Amanet Management Systems on December 30, 2024 and sell it today you would earn a total of  15,400  from holding Amanet Management Systems or generate 9.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Amanet Management Systems  vs.  Axilion Smart Mobility

Amanet Management Systems

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Amanet Management Systems are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Amanet Management sustained solid returns over the last few months and may actually be approaching a breakup point.

Axilion Smart Mobility

Risk-Adjusted Performance

Very Weak

Over the last 90 days Axilion Smart Mobility has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Amanet Management and Axilion Smart

The main advantage of trading using opposite Amanet Management and Axilion Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Axilion Smart 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 Axilion Smart will offset losses from the drop in Axilion Smart's long position.

The idea behind Amanet Management Systems and Axilion Smart Mobility pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.