Correlation Between Batm Advanced and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Catalyst 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 Catalyst 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 Catalyst Media Group, you can compare the effects of market volatilities on Batm Advanced and Catalyst 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 Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Catalyst Media.
Diversification Opportunities for Batm Advanced and Catalyst Media
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Batm and Catalyst is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Catalyst Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Media Group 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 Catalyst Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Media Group has no effect on the direction of Batm Advanced i.e., Batm Advanced and Catalyst Media go up and down completely randomly.
Pair Corralation between Batm Advanced and Catalyst Media
Assuming the 90 days trading horizon Batm Advanced Communications is expected to generate 1.87 times more return on investment than Catalyst Media. However, Batm Advanced is 1.87 times more volatile than Catalyst Media Group. It trades about 0.0 of its potential returns per unit of risk. Catalyst Media Group is currently generating about -0.05 per unit of risk. If you would invest 2,040 in Batm Advanced Communications on September 20, 2024 and sell it today you would lose (215.00) from holding Batm Advanced Communications or give up 10.54% 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. Catalyst Media Group
Performance |
| Timeline |
| Batm Advanced Commun |
| Catalyst Media Group |
Batm Advanced and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Catalyst Media
The main advantage of trading using opposite Batm Advanced and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Catalyst 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 Catalyst Media will offset losses from the drop in Catalyst Media's long position.| Batm Advanced vs. National Atomic Co | Batm Advanced vs. Flutter Entertainment PLC | Batm Advanced vs. Camellia Plc | Batm Advanced vs. Marwyn Value Investors |
| Catalyst Media vs. Zoom Video Communications | Catalyst Media vs. Batm Advanced Communications | Catalyst Media vs. United Internet AG | Catalyst Media vs. mobilezone holding AG |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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