Correlation Between Amanet Management and Mordechai Aviv

Can any of the company-specific risk be diversified away by investing in both Amanet Management and Mordechai Aviv 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 Mordechai Aviv 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 Mordechai Aviv Taasiot, you can compare the effects of market volatilities on Amanet Management and Mordechai Aviv 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 Mordechai Aviv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Mordechai Aviv.

Diversification Opportunities for Amanet Management and Mordechai Aviv

0.41

Correlation Coefficient

Amanet Management  Mordechai Aviv

Very weak diversification

The 3 months correlation between Amanet and Mordechai is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Mordechai Aviv Taasiot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mordechai Aviv Taasiot 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 Mordechai Aviv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mordechai Aviv Taasiot has no effect on the direction of Amanet Management i.e., Amanet Management and Mordechai Aviv go up and down completely randomly.

Pair Corralation between Amanet Management and Mordechai Aviv

Assuming the 90 days trading horizon Amanet Management is expected to generate 8.55 times less return on investment than Mordechai Aviv. But when comparing it to its historical volatility, Amanet Management Systems is 1.98 times less risky than Mordechai Aviv. It trades about 0.06 of its potential returns per unit of risk. Mordechai Aviv Taasiot is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  135,000  in Mordechai Aviv Taasiot on September 3, 2024 and sell it today you would earn a total of  59,900  from holding Mordechai Aviv Taasiot or generate 44.37% return on investment over 90 days.

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

Amanet Management Systems  vs.  Mordechai Aviv Taasiot

Amanet Management Systems

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Amanet Management Systems are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Amanet Management is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mordechai Aviv Taasiot

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mordechai Aviv Taasiot are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Mordechai Aviv sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amanet Management and Mordechai Aviv

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

The idea behind Amanet Management Systems and Mordechai Aviv Taasiot 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.