Correlation Between Batm Advanced and Elbit Imaging
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Elbit Imaging 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 Elbit Imaging 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 Elbit Imaging, you can compare the effects of market volatilities on Batm Advanced and Elbit Imaging 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 Elbit Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Elbit Imaging.
Diversification Opportunities for Batm Advanced and Elbit Imaging
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Batm and Elbit is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Elbit Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Imaging 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 Elbit Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Imaging has no effect on the direction of Batm Advanced i.e., Batm Advanced and Elbit Imaging go up and down completely randomly.
Pair Corralation between Batm Advanced and Elbit Imaging
Assuming the 90 days trading horizon Batm Advanced is expected to generate 292.0 times less return on investment than Elbit Imaging. But when comparing it to its historical volatility, Batm Advanced Communications is 1.02 times less risky than Elbit Imaging. It trades about 0.0 of its potential returns per unit of risk. Elbit Imaging is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 46,600 in Elbit Imaging on August 29, 2024 and sell it today you would earn a total of 5,600 from holding Elbit Imaging or generate 12.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Batm Advanced Communications vs. Elbit Imaging
Performance |
| Timeline |
| Batm Advanced Commun |
| Elbit Imaging |
Batm Advanced and Elbit Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Elbit Imaging
The main advantage of trading using opposite Batm Advanced and Elbit Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Elbit Imaging 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 Elbit Imaging will offset losses from the drop in Elbit Imaging's long position.| Batm Advanced vs. Storage Drop Storage | Batm Advanced vs. B Communications | Batm Advanced vs. Holmes Place International | Batm Advanced vs. Nova |
| Elbit Imaging vs. Clal Insurance Enterprises | Elbit Imaging vs. Harel Insurance Investments | Elbit Imaging vs. Feat Fund Investments | Elbit Imaging vs. Blender Financial Technologies |
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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