Correlation Between Mobile Max and Amot Investments

Can any of the company-specific risk be diversified away by investing in both Mobile Max and Amot Investments 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 Amot Investments 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 Amot Investments, you can compare the effects of market volatilities on Mobile Max and Amot Investments 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 Amot Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile Max and Amot Investments.

Diversification Opportunities for Mobile Max and Amot Investments

0.48

Correlation Coefficient

Mobile Max  Amot Investments

Very weak diversification

The 3 months correlation between Mobile and Amot is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Max M and Amot Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amot Investments 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 Amot Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amot Investments has no effect on the direction of Mobile Max i.e., Mobile Max and Amot Investments go up and down completely randomly.

Pair Corralation between Mobile Max and Amot Investments

Assuming the 90 days trading horizon Mobile Max M is expected to under-perform the Amot Investments. In addition to that, Mobile Max is 1.82 times more volatile than Amot Investments. It trades about -0.12 of its total potential returns per unit of risk. Amot Investments is currently generating about -0.15 per unit of volatility. If you would invest  203,882  in Amot Investments on December 2, 2024 and sell it today you would lose (8,382) from holding Amot Investments or give up 4.11% of portfolio value over 90 days.

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

Mobile Max M  vs.  Amot Investments

Mobile Max M

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mobile Max M are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Mobile Max sustained solid returns over the last few months and may actually be approaching a breakup point.

Amot Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amot Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Amot Investments is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mobile Max and Amot Investments

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

The idea behind Mobile Max M and Amot Investments 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.