Correlation Between Seche Environnement and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Seche Environnement and Batm Advanced 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 Seche Environnement and Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seche Environnement SA and Batm Advanced Communications, you can compare the effects of market volatilities on Seche Environnement and Batm Advanced 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 Seche Environnement with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seche Environnement and Batm Advanced.
Diversification Opportunities for Seche Environnement and Batm Advanced
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Seche and Batm is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Seche Environnement SA and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun and Seche Environnement 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 Seche Environnement SA are associated (or correlated) with Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of Seche Environnement i.e., Seche Environnement and Batm Advanced go up and down completely randomly.
Pair Corralation between Seche Environnement and Batm Advanced
Assuming the 90 days trading horizon Seche Environnement SA is expected to under-perform the Batm Advanced. But the stock apears to be less risky and, when comparing its historical volatility, Seche Environnement SA is 1.44 times less risky than Batm Advanced. The stock trades about -0.21 of its potential returns per unit of risk. The Batm Advanced Communications is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 1,802 in Batm Advanced Communications on September 1, 2024 and sell it today you would lose (157.00) from holding Batm Advanced Communications or give up 8.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seche Environnement SA vs. Batm Advanced Communications
Performance |
| Timeline |
| Seche Environnement |
| Batm Advanced Commun |
Seche Environnement and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seche Environnement and Batm Advanced
The main advantage of trading using opposite Seche Environnement and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seche Environnement position performs unexpectedly, Batm Advanced 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 Batm Advanced will offset losses from the drop in Batm Advanced's long position.| Seche Environnement vs. Uniper SE | Seche Environnement vs. Mulberry Group PLC | Seche Environnement vs. London Security Plc | Seche Environnement vs. Triad Group PLC |
| Batm Advanced vs. Samsung Electronics Co | Batm Advanced vs. Samsung Electronics Co | Batm Advanced vs. Hyundai Motor | Batm Advanced vs. Toyota Motor Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |