Correlation Between Isras Investment and Amir Marketing

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

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

Diversification Opportunities for Isras Investment and Amir Marketing

-0.53

Correlation Coefficient

Isras Investment  Amir Marketing

Excellent diversification

The 3 months correlation between Isras and Amir is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Isras 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 Isras Investment 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 Isras 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 Isras Investment i.e., Isras Investment and Amir Marketing go up and down completely randomly.

Pair Corralation between Isras Investment and Amir Marketing

Assuming the 90 days trading horizon Isras Investment is expected to under-perform the Amir Marketing. But the stock apears to be less risky and, when comparing its historical volatility, Isras Investment is 1.32 times less risky than Amir Marketing. The stock trades about -0.07 of its potential returns per unit of risk. The Amir Marketing and is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  285,400  in Amir Marketing and on December 29, 2024 and sell it today you would earn a total of  26,600  from holding Amir Marketing and or generate 9.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Isras Investment  vs.  Amir Marketing and

Isras Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Isras Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Amir Marketing

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Amir Marketing and are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Amir Marketing may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Isras Investment and Amir Marketing

The main advantage of trading using opposite Isras Investment and Amir Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Isras Investment 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 Isras 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.