Correlation Between Amot Investments and Menif Financial

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Can any of the company-specific risk be diversified away by investing in both Amot Investments and Menif Financial 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 Menif Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Menif Financial Services, you can compare the effects of market volatilities on Amot Investments and Menif Financial 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 Menif Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Menif Financial.

Diversification Opportunities for Amot Investments and Menif Financial

AmotMenifDiversified AwayAmotMenifDiversified Away100%
0.85
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Amot and Menif is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Menif Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menif Financial Services 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 Menif Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menif Financial Services has no effect on the direction of Amot Investments i.e., Amot Investments and Menif Financial go up and down completely randomly.

Pair Corralation between Amot Investments and Menif Financial

Assuming the 90 days trading horizon Amot Investments is expected to generate 0.74 times more return on investment than Menif Financial. However, Amot Investments is 1.36 times less risky than Menif Financial. It trades about 0.45 of its potential returns per unit of risk. Menif Financial Services is currently generating about 0.19 per unit of risk. If you would invest  148,611  in Amot Investments on September 15, 2024 and sell it today you would earn a total of  57,289  from holding Amot Investments or generate 38.55% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Amot Investments  vs.  Menif Financial Services

 Performance 
JavaScript chart by amCharts 3.21.15OctNov -10010203040
JavaScript chart by amCharts 3.21.15AMOT MNIF
       Timeline  
Amot Investments 

Risk-Adjusted Performance

35 of 100

 
Weak
 
Strong
Very Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Amot Investments are ranked lower than 35 (%) 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.
JavaScript chart by amCharts 3.21.15SepOctNovDecOctNovDec1,5001,6001,7001,8001,9002,0002,100
Menif Financial Services 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Menif Financial Services are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Menif Financial sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15SepOctNovDecOctNovDec1,1001,2001,3001,4001,5001,600

Amot Investments and Menif Financial Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.05-3.79-2.52-1.250.01.42.834.265.69 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15AMOT MNIF
       Returns  

Pair Trading with Amot Investments and Menif Financial

The main advantage of trading using opposite Amot Investments and Menif Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Menif Financial 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 Menif Financial will offset losses from the drop in Menif Financial's long position.
The idea behind Amot Investments and Menif Financial Services 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.
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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