Correlation Between Amir Marketing and Global Knafaim

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

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

Diversification Opportunities for Amir Marketing and Global Knafaim

0.8

Correlation Coefficient

Amir Marketing  Global Knafaim

Very poor diversification

The 3 months correlation between Amir and Global is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Amir Marketing and and Global Knafaim Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Knafaim Leasing and Amir Marketing 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 Amir Marketing and are associated (or correlated) with Global Knafaim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Knafaim Leasing has no effect on the direction of Amir Marketing i.e., Amir Marketing and Global Knafaim go up and down completely randomly.

Pair Corralation between Amir Marketing and Global Knafaim

Assuming the 90 days trading horizon Amir Marketing is expected to generate 1.36 times less return on investment than Global Knafaim. But when comparing it to its historical volatility, Amir Marketing and is 1.04 times less risky than Global Knafaim. It trades about 0.04 of its potential returns per unit of risk. Global Knafaim Leasing is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  5,550  in Global Knafaim Leasing on September 29, 2024 and sell it today you would earn a total of  2,090  from holding Global Knafaim Leasing or generate 37.66% return on investment over 90 days.

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

Amir Marketing and  vs.  Global Knafaim Leasing

Amir Marketing

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Amir Marketing and are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Amir Marketing may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Global Knafaim Leasing

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global Knafaim Leasing are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Global Knafaim sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amir Marketing and Global Knafaim

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

The idea behind Amir Marketing and and Global Knafaim Leasing 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.