Correlation Between Batm Advanced and Omnicom
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Omnicom 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 Omnicom 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 Omnicom Group, you can compare the effects of market volatilities on Batm Advanced and Omnicom 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 Omnicom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Omnicom.
Diversification Opportunities for Batm Advanced and Omnicom
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Batm and Omnicom is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Omnicom Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnicom Group 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 Omnicom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnicom Group has no effect on the direction of Batm Advanced i.e., Batm Advanced and Omnicom go up and down completely randomly.
Pair Corralation between Batm Advanced and Omnicom
Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the Omnicom. In addition to that, Batm Advanced is 1.41 times more volatile than Omnicom Group. It trades about -0.15 of its total potential returns per unit of risk. Omnicom Group is currently generating about -0.14 per unit of volatility. If you would invest 8,818 in Omnicom Group on November 28, 2024 and sell it today you would lose (455.00) from holding Omnicom Group or give up 5.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Batm Advanced Communications vs. Omnicom Group
Performance |
| Timeline |
| Batm Advanced Commun |
| Omnicom Group |
Batm Advanced and Omnicom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Omnicom
The main advantage of trading using opposite Batm Advanced and Omnicom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Omnicom 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 Omnicom will offset losses from the drop in Omnicom's long position.| Batm Advanced vs. Lloyds Banking Group | Batm Advanced vs. Flow Traders NV | Batm Advanced vs. St Galler Kantonalbank | Batm Advanced vs. Eastman Chemical Co |
| Omnicom vs. Global Net Lease | Omnicom vs. Arcticzymes Technologies ASA | Omnicom vs. Concurrent Technologies Plc | Omnicom 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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