Correlation Between Imperium Group and Amanet Management

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

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

Diversification Opportunities for Imperium Group and Amanet Management

-0.11

Correlation Coefficient

Imperium Group  Amanet Management

Good diversification

The 3 months correlation between Imperium and Amanet is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Imperium Group Global 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 Imperium Group 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 Imperium Group Global 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 Imperium Group i.e., Imperium Group and Amanet Management go up and down completely randomly.

Pair Corralation between Imperium Group and Amanet Management

Assuming the 90 days horizon Imperium Group Global is expected to under-perform the Amanet Management. In addition to that, Imperium Group is 3.35 times more volatile than Amanet Management Systems. It trades about -0.04 of its total potential returns per unit of risk. Amanet Management Systems is currently generating about 0.0 per unit of volatility. If you would invest  165,700  in Amanet Management Systems on March 10, 2024 and sell it today you would lose (700.00) from holding Amanet Management Systems or give up 0.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	72.73%
Values	Daily Returns

Imperium Group Global  vs.  Amanet Management Systems

Imperium Group Global

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Imperium Group Global are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Imperium Group reported solid returns over the last few months and may actually be approaching a breakup point.

Amanet Management Systems

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Amanet Management Systems are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Amanet Management may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Pair Trading with Imperium Group and Amanet Management

The main advantage of trading using opposite Imperium Group and Amanet Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imperium Group 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 Imperium Group Global 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.