Correlation Between Altshuler Shaham and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Altshuler Shaham 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 Altshuler Shaham and Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altshuler Shaham Financial and Batm Advanced Communications, you can compare the effects of market volatilities on Altshuler Shaham 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 Altshuler Shaham with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altshuler Shaham and Batm Advanced.
Diversification Opportunities for Altshuler Shaham and Batm Advanced
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Altshuler and Batm is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial 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 Altshuler Shaham 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 Altshuler Shaham Financial 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 Altshuler Shaham i.e., Altshuler Shaham and Batm Advanced go up and down completely randomly.
Pair Corralation between Altshuler Shaham and Batm Advanced
Assuming the 90 days trading horizon Altshuler Shaham Financial is expected to generate 1.21 times more return on investment than Batm Advanced. However, Altshuler Shaham is 1.21 times more volatile than Batm Advanced Communications. It trades about -0.01 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about -0.08 per unit of risk. If you would invest 67,340 in Altshuler Shaham Financial on August 31, 2024 and sell it today you would lose (630.00) from holding Altshuler Shaham Financial or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altshuler Shaham Financial vs. Batm Advanced Communications
Performance |
| Timeline |
| Altshuler Shaham Fin |
| Batm Advanced Commun |
Altshuler Shaham and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altshuler Shaham and Batm Advanced
The main advantage of trading using opposite Altshuler Shaham and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altshuler Shaham 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.| Altshuler Shaham vs. Generation Capital | Altshuler Shaham vs. Meitav Dash Investments | Altshuler Shaham vs. IBI Inv House | Altshuler Shaham vs. Mivtach Shamir |
| Batm Advanced vs. Storage Drop Storage | Batm Advanced vs. Brainsway | Batm Advanced vs. Mivne Real Estate | Batm Advanced vs. Photomyne |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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