Correlation Between Mivne Real and Amot Investments

Can any of the company-specific risk be diversified away by investing in both Mivne Real 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 Mivne Real and Amot Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mivne Real Estate and Amot Investments, you can compare the effects of market volatilities on Mivne Real 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 Mivne Real with a short position of Amot Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mivne Real and Amot Investments.

Diversification Opportunities for Mivne Real and Amot Investments

0.99

Correlation Coefficient

Mivne Real  Amot Investments

No risk reduction

The 3 months correlation between Mivne and Amot is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Mivne Real Estate and Amot Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amot Investments and Mivne Real 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 Mivne Real Estate 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 Mivne Real i.e., Mivne Real and Amot Investments go up and down completely randomly.

Pair Corralation between Mivne Real and Amot Investments

Assuming the 90 days trading horizon Mivne Real is expected to generate 1.47 times less return on investment than Amot Investments. In addition to that, Mivne Real is 1.12 times more volatile than Amot Investments. It trades about 0.28 of its total potential returns per unit of risk. Amot Investments is currently generating about 0.46 per unit of volatility. If you would invest  148,611  in Amot Investments on September 13, 2024 and sell it today you would earn a total of  57,289  from holding Amot Investments or generate 38.55% return on investment over 90 days.

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

Mivne Real Estate  vs.  Amot Investments

Mivne Real Estate

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mivne Real Estate are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Mivne Real sustained solid returns over the last few months and may actually be approaching a breakup point.

Amot Investments

Risk-Adjusted Performance

36 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Amot Investments are ranked lower than 36 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Amot Investments sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mivne Real and Amot Investments

The main advantage of trading using opposite Mivne Real and Amot Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mivne Real 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 Mivne Real Estate 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.