Correlation Between Mivtach Shamir and Amir Marketing

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

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

Diversification Opportunities for Mivtach Shamir and Amir Marketing

0.81

Correlation Coefficient

Mivtach Shamir  Amir Marketing

Very poor diversification

The 3 months correlation between Mivtach and Amir is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mivtach Shamir and Amir Marketing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amir Marketing 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 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 Mivtach Shamir i.e., Mivtach Shamir and Amir Marketing go up and down completely randomly.

Pair Corralation between Mivtach Shamir and Amir Marketing

Assuming the 90 days trading horizon Mivtach Shamir is expected to generate 1.84 times less return on investment than Amir Marketing. In addition to that, Mivtach Shamir is 1.13 times more volatile than Amir Marketing and. It trades about 0.09 of its total potential returns per unit of risk. Amir Marketing and is currently generating about 0.18 per unit of volatility. If you would invest  258,500  in Amir Marketing and on September 3, 2024 and sell it today you would earn a total of  38,800  from holding Amir Marketing and or generate 15.01% return on investment over 90 days.

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

Mivtach Shamir  vs.  Amir Marketing and

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.

Amir Marketing

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amir Marketing and are ranked lower than 14 (%) 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 Mivtach Shamir and Amir Marketing

The main advantage of trading using opposite Mivtach Shamir and Amir Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mivtach Shamir 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 Mivtach Shamir 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.

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.