Correlation Between Batm Advanced and Retailors
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Retailors 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 Retailors 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 Retailors, you can compare the effects of market volatilities on Batm Advanced and Retailors 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 Retailors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Retailors.
Diversification Opportunities for Batm Advanced and Retailors
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Batm and Retailors is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Retailors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retailors 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 Retailors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retailors has no effect on the direction of Batm Advanced i.e., Batm Advanced and Retailors go up and down completely randomly.
Pair Corralation between Batm Advanced and Retailors
Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the Retailors. But the stock apears to be less risky and, when comparing its historical volatility, Batm Advanced Communications is 1.24 times less risky than Retailors. The stock trades about -0.02 of its potential returns per unit of risk. The Retailors is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 671,582 in Retailors on August 29, 2024 and sell it today you would earn a total of 79,918 from holding Retailors or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Batm Advanced Communications vs. Retailors
Performance |
| Timeline |
| Batm Advanced Commun |
| Retailors |
Batm Advanced and Retailors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Retailors
The main advantage of trading using opposite Batm Advanced and Retailors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Retailors 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 Retailors will offset losses from the drop in Retailors' long position.| Batm Advanced vs. MediPress Health Limited Partnership | Batm Advanced vs. Gamatronic Electronic Industries | Batm Advanced vs. Suny Cellular Communication | Batm Advanced vs. Bezeq Israeli Telecommunication |
| Retailors vs. Nice | Retailors vs. The Gold Bond | Retailors vs. Bank Leumi Le Israel | Retailors vs. ICL Israel Chemicals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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