Correlation Between Batm Advanced and Anglo Asian
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Anglo Asian 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 Anglo Asian 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 Anglo Asian Mining, you can compare the effects of market volatilities on Batm Advanced and Anglo Asian 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 Anglo Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Anglo Asian.
Diversification Opportunities for Batm Advanced and Anglo Asian
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Batm and Anglo is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Anglo Asian Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Asian Mining 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 Anglo Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Asian Mining has no effect on the direction of Batm Advanced i.e., Batm Advanced and Anglo Asian go up and down completely randomly.
Pair Corralation between Batm Advanced and Anglo Asian
Assuming the 90 days trading horizon Batm Advanced Communications is expected to generate 1.12 times more return on investment than Anglo Asian. However, Batm Advanced is 1.12 times more volatile than Anglo Asian Mining. It trades about -0.01 of its potential returns per unit of risk. Anglo Asian Mining is currently generating about -0.02 per unit of risk. If you would invest 1,860 in Batm Advanced Communications on October 12, 2024 and sell it today you would lose (15.00) from holding Batm Advanced Communications or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Batm Advanced Communications vs. Anglo Asian Mining
Performance |
| Timeline |
| Batm Advanced Commun |
| Anglo Asian Mining |
Batm Advanced and Anglo Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Anglo Asian
The main advantage of trading using opposite Batm Advanced and Anglo Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Anglo Asian 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 Anglo Asian will offset losses from the drop in Anglo Asian's long position.| Batm Advanced vs. Verizon Communications | Batm Advanced vs. GlobalData PLC | Batm Advanced vs. Extra Space Storage | Batm Advanced vs. JB Hunt Transport |
| Anglo Asian vs. Batm Advanced Communications | Anglo Asian vs. Gamma Communications PLC | Anglo Asian vs. Molson Coors Beverage | Anglo Asian vs. InterContinental Hotels Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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