Correlation Between Batm Advanced and Electronic Arts

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Electronic Arts 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 Batm Advanced and Electronic Arts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Batm Advanced Communications and Electronic Arts, you can compare the effects of market volatilities on Batm Advanced and Electronic Arts 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 Batm Advanced with a short position of Electronic Arts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Electronic Arts.

Diversification Opportunities for Batm Advanced and Electronic Arts

-0.15
  Correlation Coefficient

Good diversification

The 3 months correlation between Batm and Electronic is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Electronic Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Arts and Batm Advanced 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 Batm Advanced Communications are associated (or correlated) with Electronic Arts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Arts has no effect on the direction of Batm Advanced i.e., Batm Advanced and Electronic Arts go up and down completely randomly.

Pair Corralation between Batm Advanced and Electronic Arts

Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the Electronic Arts. In addition to that, Batm Advanced is 2.24 times more volatile than Electronic Arts. It trades about -0.02 of its total potential returns per unit of risk. Electronic Arts is currently generating about 0.03 per unit of volatility. If you would invest  12,576  in Electronic Arts on October 16, 2024 and sell it today you would earn a total of  1,554  from holding Electronic Arts or generate 12.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.4%
ValuesDaily Returns

Batm Advanced Communications  vs.  Electronic Arts

 Performance 
       Timeline  
Batm Advanced Commun 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Very Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Batm Advanced Communications are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Batm Advanced is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
Electronic Arts 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Electronic Arts has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Electronic Arts is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Batm Advanced and Electronic Arts Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Batm Advanced and Electronic Arts

The main advantage of trading using opposite Batm Advanced and Electronic Arts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Electronic Arts 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 Electronic Arts will offset losses from the drop in Electronic Arts' long position.
The idea behind Batm Advanced Communications and Electronic Arts 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.
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.