Correlation Between Batm Advanced and Safe T
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Safe T 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 Safe T 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 Safe T Group, you can compare the effects of market volatilities on Batm Advanced and Safe T 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 Safe T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Safe T.
Diversification Opportunities for Batm Advanced and Safe T
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Batm and Safe is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Safe T Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe T Group 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 Safe T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe T Group has no effect on the direction of Batm Advanced i.e., Batm Advanced and Safe T go up and down completely randomly.
Pair Corralation between Batm Advanced and Safe T
Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the Safe T. But the stock apears to be less risky and, when comparing its historical volatility, Batm Advanced Communications is 4.06 times less risky than Safe T. The stock trades about -0.02 of its potential returns per unit of risk. The Safe T Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 17,440 in Safe T Group on September 3, 2024 and sell it today you would earn a total of 28,810 from holding Safe T Group or generate 165.19% 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. Safe T Group
Performance |
| Timeline |
| Batm Advanced Commun |
| Safe T Group |
Batm Advanced and Safe T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Safe T
The main advantage of trading using opposite Batm Advanced and Safe T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Safe T 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 Safe T will offset losses from the drop in Safe T's long position.| Batm Advanced vs. MEITAV INVESTMENTS HOUSE | Batm Advanced vs. Elbit Medical Technologies | Batm Advanced vs. Global Knafaim Leasing | Batm Advanced vs. Petrochemical |
| Safe T vs. Batm Advanced Communications | Safe T vs. Isras Investment | Safe T vs. Feat Fund Investments | Safe T vs. Discount Investment Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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