Correlation Between Batm Advanced and Amot Investments
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Amot Investments 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 Amot Investments 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 Amot Investments, you can compare the effects of market volatilities on Batm Advanced and Amot Investments 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 Amot Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Amot Investments.
Diversification Opportunities for Batm Advanced and Amot Investments
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Batm and Amot is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Amot Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amot Investments 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 Amot Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amot Investments has no effect on the direction of Batm Advanced i.e., Batm Advanced and Amot Investments go up and down completely randomly.
Pair Corralation between Batm Advanced and Amot Investments
Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the Amot Investments. In addition to that, Batm Advanced is 1.15 times more volatile than Amot Investments. It trades about -0.11 of its total potential returns per unit of risk. Amot Investments is currently generating about 0.15 per unit of volatility. If you would invest 161,400 in Amot Investments on November 27, 2024 and sell it today you would earn a total of 38,300 from holding Amot Investments or generate 23.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Batm Advanced Communications vs. Amot Investments
Performance |
| Timeline |
| Batm Advanced Commun |
| Amot Investments |
Batm Advanced and Amot Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Amot Investments
The main advantage of trading using opposite Batm Advanced and Amot Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Amot Investments 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 Amot Investments will offset losses from the drop in Amot Investments' long position.| Batm Advanced vs. RSL Electronics | Batm Advanced vs. Amir Marketing and | Batm Advanced vs. Meitav Dash Investments | Batm Advanced vs. WhiteSmoke Software |
| Amot Investments vs. Alony Hetz Properties | Amot Investments vs. Azrieli Group | Amot Investments vs. Melisron | Amot Investments vs. Bank Leumi Le Israel |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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