Correlation Between Batm Advanced and Seche Environnement
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Seche Environnement 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 Seche Environnement 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 Seche Environnement SA, you can compare the effects of market volatilities on Batm Advanced and Seche Environnement 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 Seche Environnement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Seche Environnement.
Diversification Opportunities for Batm Advanced and Seche Environnement
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Batm and Seche is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Seche Environnement SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seche Environnement 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 Seche Environnement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seche Environnement has no effect on the direction of Batm Advanced i.e., Batm Advanced and Seche Environnement go up and down completely randomly.
Pair Corralation between Batm Advanced and Seche Environnement
Assuming the 90 days trading horizon Batm Advanced Communications is expected to generate 1.44 times more return on investment than Seche Environnement. However, Batm Advanced is 1.44 times more volatile than Seche Environnement SA. It trades about -0.14 of its potential returns per unit of risk. Seche Environnement SA is currently generating about -0.21 per unit of risk. 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 |
Batm Advanced Communications vs. Seche Environnement SA
Performance |
| Timeline |
| Batm Advanced Commun |
| Seche Environnement |
Batm Advanced and Seche Environnement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Seche Environnement
The main advantage of trading using opposite Batm Advanced and Seche Environnement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Seche Environnement 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 Seche Environnement will offset losses from the drop in Seche Environnement's long position.| Batm Advanced vs. Samsung Electronics Co | Batm Advanced vs. Samsung Electronics Co | Batm Advanced vs. Hyundai Motor | Batm Advanced vs. Toyota Motor Corp |
| Seche Environnement vs. Uniper SE | Seche Environnement vs. Mulberry Group PLC | Seche Environnement vs. London Security Plc | Seche Environnement vs. Triad Group PLC |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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