Correlation Between Analyst IMS and Amir Marketing

Can any of the company-specific risk be diversified away by investing in both Analyst IMS and Amir Marketing 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 Analyst IMS and Amir Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Analyst IMS Investment and Amir Marketing and, you can compare the effects of market volatilities on Analyst IMS and Amir Marketing 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 Analyst IMS with a short position of Amir Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analyst IMS and Amir Marketing.

Diversification Opportunities for Analyst IMS and Amir Marketing

0.69

Correlation Coefficient

Analyst IMS  Amir Marketing

Poor diversification

The 3 months correlation between Analyst and Amir is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Analyst IMS Investment and Amir Marketing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amir Marketing and Analyst IMS 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 Analyst IMS Investment are associated (or correlated) with Amir Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amir Marketing has no effect on the direction of Analyst IMS i.e., Analyst IMS and Amir Marketing go up and down completely randomly.

Pair Corralation between Analyst IMS and Amir Marketing

Assuming the 90 days trading horizon Analyst IMS Investment is expected to generate 0.84 times more return on investment than Amir Marketing. However, Analyst IMS Investment is 1.19 times less risky than Amir Marketing. It trades about 0.67 of its potential returns per unit of risk. Amir Marketing and is currently generating about 0.15 per unit of risk. If you would invest  383,600  in Analyst IMS Investment on October 20, 2024 and sell it today you would earn a total of  301,000  from holding Analyst IMS Investment or generate 78.47% return on investment over 90 days.

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

Analyst IMS Investment  vs.  Amir Marketing and

Analyst IMS Investment

Risk-Adjusted Performance

52 of 100

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in Analyst IMS Investment are ranked lower than 52 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Analyst IMS sustained solid returns over the last few months and may actually be approaching a breakup point.

Amir Marketing

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amir Marketing and are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Amir Marketing sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Analyst IMS and Amir Marketing

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

The idea behind Analyst IMS Investment and Amir Marketing and 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.