Correlation Between Mobile Max and Amanet Management

Can any of the company-specific risk be diversified away by investing in both Mobile Max and Amanet Management 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 Mobile Max and Amanet Management into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mobile Max M and Amanet Management Systems, you can compare the effects of market volatilities on Mobile Max and Amanet Management 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 Mobile Max with a short position of Amanet Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile Max and Amanet Management.

Diversification Opportunities for Mobile Max and Amanet Management

-0.36

Correlation Coefficient

Mobile Max  Amanet Management

Very good diversification

The 3 months correlation between Mobile and Amanet is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Max M and Amanet Management Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amanet Management Systems and Mobile Max 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 Mobile Max M are associated (or correlated) with Amanet Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amanet Management Systems has no effect on the direction of Mobile Max i.e., Mobile Max and Amanet Management go up and down completely randomly.

Pair Corralation between Mobile Max and Amanet Management

Assuming the 90 days trading horizon Mobile Max M is expected to under-perform the Amanet Management. In addition to that, Mobile Max is 1.71 times more volatile than Amanet Management Systems. It trades about -0.06 of its total potential returns per unit of risk. Amanet Management Systems is currently generating about 0.07 per unit of volatility. If you would invest  150,300  in Amanet Management Systems on September 13, 2024 and sell it today you would earn a total of  6,500  from holding Amanet Management Systems or generate 4.32% return on investment over 90 days.

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

Mobile Max M  vs.  Amanet Management Systems

Mobile Max M

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mobile Max M has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain 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.

Amanet Management Systems

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Amanet Management Systems are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Amanet Management may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Mobile Max and Amanet Management

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

The idea behind Mobile Max M and Amanet Management Systems 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.