Correlation Between Amot Investments and Altshuler Shaham

Can any of the company-specific risk be diversified away by investing in both Amot Investments and Altshuler Shaham 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 Amot Investments and Altshuler Shaham into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amot Investments and Altshuler Shaham Financial, you can compare the effects of market volatilities on Amot Investments and Altshuler Shaham 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 Amot Investments with a short position of Altshuler Shaham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Altshuler Shaham.

Diversification Opportunities for Amot Investments and Altshuler Shaham

-0.21

Correlation Coefficient

Amot Investments  Altshuler Shaham

Very good diversification

The 3 months correlation between Amot and Altshuler is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Altshuler Shaham Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altshuler Shaham Fin and Amot Investments 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 Amot Investments are associated (or correlated) with Altshuler Shaham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altshuler Shaham Fin has no effect on the direction of Amot Investments i.e., Amot Investments and Altshuler Shaham go up and down completely randomly.

Pair Corralation between Amot Investments and Altshuler Shaham

Assuming the 90 days trading horizon Amot Investments is expected to generate 0.64 times more return on investment than Altshuler Shaham. However, Amot Investments is 1.55 times less risky than Altshuler Shaham. It trades about 0.37 of its potential returns per unit of risk. Altshuler Shaham Financial is currently generating about 0.01 per unit of risk. If you would invest  165,178  in Amot Investments on October 25, 2024 and sell it today you would earn a total of  48,822  from holding Amot Investments or generate 29.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.04%
Values	Daily Returns

Amot Investments  vs.  Altshuler Shaham Financial

Amot Investments

Risk-Adjusted Performance

28 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Amot Investments are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Amot Investments sustained solid returns over the last few months and may actually be approaching a breakup point.

Altshuler Shaham Fin

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Altshuler Shaham Financial are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Altshuler Shaham is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amot Investments and Altshuler Shaham

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

The idea behind Amot Investments and Altshuler Shaham Financial 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.