Correlation Between Batm Advanced and Catena Media
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Catena Media 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 Catena Media 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 Catena Media PLC, you can compare the effects of market volatilities on Batm Advanced and Catena Media 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 Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Catena Media.
Diversification Opportunities for Batm Advanced and Catena Media
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Batm and Catena is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Catena Media PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catena Media PLC 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 Catena Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catena Media PLC has no effect on the direction of Batm Advanced i.e., Batm Advanced and Catena Media go up and down completely randomly.
Pair Corralation between Batm Advanced and Catena Media
Assuming the 90 days trading horizon Batm Advanced Communications is expected to generate 0.65 times more return on investment than Catena Media. However, Batm Advanced Communications is 1.53 times less risky than Catena Media. It trades about 0.0 of its potential returns per unit of risk. Catena Media PLC is currently generating about -0.06 per unit of risk. If you would invest 2,075 in Batm Advanced Communications on August 28, 2024 and sell it today you would lose (145.00) from holding Batm Advanced Communications or give up 6.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Batm Advanced Communications vs. Catena Media PLC
Performance |
| Timeline |
| Batm Advanced Commun |
| Catena Media PLC |
Batm Advanced and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Catena Media
The main advantage of trading using opposite Batm Advanced and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Catena Media 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 Catena Media will offset losses from the drop in Catena Media's long position.| Batm Advanced vs. Delta Air Lines | Batm Advanced vs. Applied Materials | Batm Advanced vs. Check Point Software | Batm Advanced vs. Cairn Homes PLC |
| Catena Media vs. Federal Realty Investment | Catena Media vs. Check Point Software | Catena Media vs. SBM Offshore NV | Catena Media vs. New Residential 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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