Correlation Between Batm Advanced and Golden Metal
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Golden Metal 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 Golden Metal 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 Golden Metal Resources, you can compare the effects of market volatilities on Batm Advanced and Golden Metal 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 Golden Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Golden Metal.
Diversification Opportunities for Batm Advanced and Golden Metal
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Batm and Golden is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Golden Metal Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Metal Resources 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 Golden Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Metal Resources has no effect on the direction of Batm Advanced i.e., Batm Advanced and Golden Metal go up and down completely randomly.
Pair Corralation between Batm Advanced and Golden Metal
Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the Golden Metal. But the stock apears to be less risky and, when comparing its historical volatility, Batm Advanced Communications is 1.99 times less risky than Golden Metal. The stock trades about -0.16 of its potential returns per unit of risk. The Golden Metal Resources is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,500 in Golden Metal Resources on September 2, 2024 and sell it today you would earn a total of 550.00 from holding Golden Metal Resources or generate 22.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Batm Advanced Communications vs. Golden Metal Resources
Performance |
| Timeline |
| Batm Advanced Commun |
| Golden Metal Resources |
Batm Advanced and Golden Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Golden Metal
The main advantage of trading using opposite Batm Advanced and Golden Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Golden Metal 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 Golden Metal will offset losses from the drop in Golden Metal's long position.| Batm Advanced vs. Alaska Air Group | Batm Advanced vs. Delta Air Lines | Batm Advanced vs. Silvercorp Metals | Batm Advanced vs. Greenroc Mining PLC |
| Golden Metal vs. Fevertree Drinks Plc | Golden Metal vs. Ion Beam Applications | Golden Metal vs. Fidelity National Information | Golden Metal vs. Batm Advanced Communications |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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