Correlation Between Amot Investments and Cellcom Israel
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Cellcom Israel 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 Cellcom Israel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Cellcom Israel, you can compare the effects of market volatilities on Amot Investments and Cellcom Israel 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 Cellcom Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Cellcom Israel.
Diversification Opportunities for Amot Investments and Cellcom Israel
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amot and Cellcom is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Cellcom Israel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellcom Israel 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 Cellcom Israel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellcom Israel has no effect on the direction of Amot Investments i.e., Amot Investments and Cellcom Israel go up and down completely randomly.
Pair Corralation between Amot Investments and Cellcom Israel
Assuming the 90 days trading horizon Amot Investments is expected to under-perform the Cellcom Israel. But the stock apears to be less risky and, when comparing its historical volatility, Amot Investments is 1.67 times less risky than Cellcom Israel. The stock trades about -0.03 of its potential returns per unit of risk. The Cellcom Israel is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 193,500 in Cellcom Israel on December 4, 2024 and sell it today you would earn a total of 54,700 from holding Cellcom Israel or generate 28.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Amot Investments vs. Cellcom Israel
Performance |
Timeline |
Amot Investments |
Cellcom Israel |
Amot Investments and Cellcom Israel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amot Investments and Cellcom Israel
The main advantage of trading using opposite Amot Investments and Cellcom Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Cellcom Israel 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 Cellcom Israel will offset losses from the drop in Cellcom Israel's long position.Amot Investments vs. Alony Hetz Properties | Amot Investments vs. Azrieli Group | Amot Investments vs. Melisron | Amot Investments vs. Bank Leumi Le Israel |
Cellcom Israel vs. Imed Infinity Medical Limited | Cellcom Israel vs. Sofwave Medical | Cellcom Israel vs. Suny Cellular Communication | Cellcom Israel vs. Rapac Communication Infrastructure |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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