Correlation Between Batm Advanced and Amedeo Air
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Amedeo Air 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 Amedeo Air 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 Amedeo Air Four, you can compare the effects of market volatilities on Batm Advanced and Amedeo Air 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 Amedeo Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Amedeo Air.
Diversification Opportunities for Batm Advanced and Amedeo Air
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Batm and Amedeo is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Amedeo Air Four in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amedeo Air Four 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 Amedeo Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amedeo Air Four has no effect on the direction of Batm Advanced i.e., Batm Advanced and Amedeo Air go up and down completely randomly.
Pair Corralation between Batm Advanced and Amedeo Air
Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the Amedeo Air. In addition to that, Batm Advanced is 2.79 times more volatile than Amedeo Air Four. It trades about -0.07 of its total potential returns per unit of risk. Amedeo Air Four is currently generating about 0.52 per unit of volatility. If you would invest 5,420 in Amedeo Air Four on October 11, 2024 and sell it today you would earn a total of 430.00 from holding Amedeo Air Four or generate 7.93% 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. Amedeo Air Four
Performance |
| Timeline |
| Batm Advanced Commun |
| Amedeo Air Four |
Batm Advanced and Amedeo Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Amedeo Air
The main advantage of trading using opposite Batm Advanced and Amedeo Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Amedeo Air 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 Amedeo Air will offset losses from the drop in Amedeo Air's long position.| Batm Advanced vs. Axfood AB | Batm Advanced vs. Odfjell Drilling | Batm Advanced vs. Dairy Farm International | Batm Advanced vs. Premier Foods PLC |
| Amedeo Air vs. Batm Advanced Communications | Amedeo Air vs. Grieg Seafood | Amedeo Air vs. Premier Foods PLC | Amedeo Air vs. Solstad Offshore ASA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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