Correlation Between Batm Advanced and GoldMining
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and GoldMining 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 GoldMining 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 GoldMining, you can compare the effects of market volatilities on Batm Advanced and GoldMining 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 GoldMining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and GoldMining.
Diversification Opportunities for Batm Advanced and GoldMining
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Batm and GoldMining is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and GoldMining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoldMining 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 GoldMining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoldMining has no effect on the direction of Batm Advanced i.e., Batm Advanced and GoldMining go up and down completely randomly.
Pair Corralation between Batm Advanced and GoldMining
Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the GoldMining. But the stock apears to be less risky and, when comparing its historical volatility, Batm Advanced Communications is 1.15 times less risky than GoldMining. The stock trades about -0.01 of its potential returns per unit of risk. The GoldMining is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 115.00 in GoldMining on November 9, 2024 and sell it today you would earn a total of 3.00 from holding GoldMining or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 50.92% |
| Values | Daily Returns |
Batm Advanced Communications vs. GoldMining
Performance |
| Timeline |
| Batm Advanced Commun |
| GoldMining |
Batm Advanced and GoldMining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and GoldMining
The main advantage of trading using opposite Batm Advanced and GoldMining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, GoldMining 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 GoldMining will offset losses from the drop in GoldMining'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 |
| GoldMining vs. Target Healthcare REIT | GoldMining vs. Porvair plc | GoldMining vs. Sealed Air Corp | GoldMining vs. PureTech Health 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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