Correlation Between Amanet Management and Strauss

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

Diversification Opportunities for Amanet Management and Strauss

0.65

Correlation Coefficient

Amanet Management  Strauss

Poor diversification

The 3 months correlation between Amanet and Strauss is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Strauss Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strauss Group 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 Strauss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strauss Group has no effect on the direction of Amanet Management i.e., Amanet Management and Strauss go up and down completely randomly.

Pair Corralation between Amanet Management and Strauss

Assuming the 90 days trading horizon Amanet Management is expected to generate 1.47 times less return on investment than Strauss. In addition to that, Amanet Management is 1.49 times more volatile than Strauss Group. It trades about 0.08 of its total potential returns per unit of risk. Strauss Group is currently generating about 0.18 per unit of volatility. If you would invest  672,041  in Strauss Group on December 30, 2024 and sell it today you would earn a total of  107,959  from holding Strauss Group or generate 16.06% return on investment over 90 days.

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

Amanet Management Systems  vs.  Strauss Group

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.

Strauss Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Strauss Group are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Strauss sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amanet Management and Strauss

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

The idea behind Amanet Management Systems and Strauss Group 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.