Correlation Between GoldMining and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both GoldMining 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 GoldMining and Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and Batm Advanced Communications, you can compare the effects of market volatilities on GoldMining 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 GoldMining with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and Batm Advanced.
Diversification Opportunities for GoldMining and Batm Advanced
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GoldMining and Batm is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining 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 GoldMining 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 GoldMining 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 GoldMining i.e., GoldMining and Batm Advanced go up and down completely randomly.
Pair Corralation between GoldMining and Batm Advanced
Assuming the 90 days trading horizon GoldMining is expected to generate 1.15 times more return on investment than Batm Advanced. However, GoldMining is 1.15 times more volatile than Batm Advanced Communications. It trades about 0.02 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about -0.01 per unit of risk. If you would invest 115.00 in GoldMining on November 9, 2024 and sell it today you would earn a total of 3.00 from holding GoldMining or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 50.92% |
| Values | Daily Returns |
GoldMining vs. Batm Advanced Communications
Performance |
| Timeline |
| GoldMining |
| Batm Advanced Commun |
GoldMining and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoldMining and Batm Advanced
The main advantage of trading using opposite GoldMining and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining 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.| GoldMining vs. Target Healthcare REIT | GoldMining vs. Porvair plc | GoldMining vs. Sealed Air Corp | GoldMining vs. PureTech Health plc |
| Batm Advanced vs. Foresight Environmental Infrastructure | Batm Advanced vs. AMG Advanced Metallurgical | Batm Advanced vs. GoldMining | Batm Advanced vs. Symphony Environmental Technologies |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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