Correlation Between Batm Advanced and Menif Financial
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Menif Financial 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 Menif Financial 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 Menif Financial Services, you can compare the effects of market volatilities on Batm Advanced and Menif Financial 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 Menif Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Menif Financial.
Diversification Opportunities for Batm Advanced and Menif Financial
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Batm and Menif is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Menif Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menif Financial Services 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 Menif Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menif Financial Services has no effect on the direction of Batm Advanced i.e., Batm Advanced and Menif Financial go up and down completely randomly.
Pair Corralation between Batm Advanced and Menif Financial
Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the Menif Financial. But the stock apears to be less risky and, when comparing its historical volatility, Batm Advanced Communications is 1.07 times less risky than Menif Financial. The stock trades about -0.03 of its potential returns per unit of risk. The Menif Financial Services is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 109,979 in Menif Financial Services on November 3, 2024 and sell it today you would earn a total of 64,321 from holding Menif Financial Services or generate 58.48% 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. Menif Financial Services
Performance |
| Timeline |
| Batm Advanced Commun |
| Menif Financial Services |
Batm Advanced and Menif Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Menif Financial
The main advantage of trading using opposite Batm Advanced and Menif Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Menif Financial 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 Menif Financial will offset losses from the drop in Menif Financial's long position.| Batm Advanced vs. Aura Investments | Batm Advanced vs. Skyline Investments | Batm Advanced vs. One Software Technologies | Batm Advanced vs. Discount Investment Corp |
| Menif Financial vs. Sofwave Medical | Menif Financial vs. Epitomee Medical | Menif Financial vs. Payment Financial Technologies | Menif Financial vs. B 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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