Correlation Between Batm Advanced and First Majestic
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and First Majestic 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 First Majestic 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 First Majestic Silver, you can compare the effects of market volatilities on Batm Advanced and First Majestic 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 First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and First Majestic.
Diversification Opportunities for Batm Advanced and First Majestic
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Batm and First is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and First Majestic Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Majestic Silver 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 First Majestic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Majestic Silver has no effect on the direction of Batm Advanced i.e., Batm Advanced and First Majestic go up and down completely randomly.
Pair Corralation between Batm Advanced and First Majestic
Assuming the 90 days trading horizon Batm Advanced Communications is expected to generate 0.44 times more return on investment than First Majestic. However, Batm Advanced Communications is 2.29 times less risky than First Majestic. It trades about 0.13 of its potential returns per unit of risk. First Majestic Silver is currently generating about 0.04 per unit of risk. If you would invest 1,785 in Batm Advanced Communications on November 9, 2024 and sell it today you would earn a total of 88.00 from holding Batm Advanced Communications or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Batm Advanced Communications vs. First Majestic Silver
Performance |
| Timeline |
| Batm Advanced Commun |
| First Majestic Silver |
Batm Advanced and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and First Majestic
The main advantage of trading using opposite Batm Advanced and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, First Majestic 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 First Majestic will offset losses from the drop in First Majestic's long position.| Batm Advanced vs. Foresight Environmental Infrastructure | Batm Advanced vs. AMG Advanced Metallurgical | Batm Advanced vs. GoldMining | Batm Advanced vs. Symphony Environmental Technologies |
| First Majestic vs. Commerzbank AG | First Majestic vs. Erste Group Bank | First Majestic vs. Sparebank 1 SR | First Majestic vs. Vietnam Enterprise Investments |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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