Correlation Between Mivtach Shamir and Amanet Management

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

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

Diversification Opportunities for Mivtach Shamir and Amanet Management

0.53

Correlation Coefficient

Mivtach Shamir  Amanet Management

Very weak diversification

The 3 months correlation between Mivtach and Amanet is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mivtach Shamir 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 Mivtach Shamir 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 Mivtach Shamir 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 Mivtach Shamir i.e., Mivtach Shamir and Amanet Management go up and down completely randomly.

Pair Corralation between Mivtach Shamir and Amanet Management

Assuming the 90 days trading horizon Mivtach Shamir is expected to generate 1.29 times more return on investment than Amanet Management. However, Mivtach Shamir is 1.29 times more volatile than Amanet Management Systems. It trades about 0.09 of its potential returns per unit of risk. Amanet Management Systems is currently generating about 0.06 per unit of risk. If you would invest  1,675,000  in Mivtach Shamir on September 3, 2024 and sell it today you would earn a total of  123,000  from holding Mivtach Shamir or generate 7.34% return on investment over 90 days.

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

Mivtach Shamir  vs.  Amanet Management Systems

Mivtach Shamir

Risk-Adjusted Performance

6 of 100

Modest

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

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 strong basic indicators, Amanet Management is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mivtach Shamir and Amanet Management

The main advantage of trading using opposite Mivtach Shamir and Amanet Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mivtach Shamir 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 Mivtach Shamir 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.