Correlation Between Electreon Wireless and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Electreon Wireless and Batm Advanced 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 Electreon Wireless and Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electreon Wireless and Batm Advanced Communications, you can compare the effects of market volatilities on Electreon Wireless and Batm Advanced 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 Electreon Wireless with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electreon Wireless and Batm Advanced.
Diversification Opportunities for Electreon Wireless and Batm Advanced
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Electreon and Batm is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Electreon Wireless and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun and Electreon Wireless 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 Electreon Wireless are associated (or correlated) with Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of Electreon Wireless i.e., Electreon Wireless and Batm Advanced go up and down completely randomly.
Pair Corralation between Electreon Wireless and Batm Advanced
Assuming the 90 days trading horizon Electreon Wireless is expected to generate 1.99 times more return on investment than Batm Advanced. However, Electreon Wireless is 1.99 times more volatile than Batm Advanced Communications. It trades about 0.1 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about -0.07 per unit of risk. If you would invest 1,580,000 in Electreon Wireless on October 26, 2024 and sell it today you would earn a total of 562,000 from holding Electreon Wireless or generate 35.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electreon Wireless vs. Batm Advanced Communications
Performance |
| Timeline |
| Electreon Wireless |
| Batm Advanced Commun |
Electreon Wireless and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electreon Wireless and Batm Advanced
The main advantage of trading using opposite Electreon Wireless and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electreon Wireless position performs unexpectedly, Batm Advanced 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 Batm Advanced will offset losses from the drop in Batm Advanced's long position.| Electreon Wireless vs. Shapir Engineering Industry | Electreon Wireless vs. Electra | Electreon Wireless vs. Shikun Binui | Electreon Wireless vs. Levinstein Eng |
| Batm Advanced vs. Migdal Insurance | Batm Advanced vs. Arad Investment Industrial | Batm Advanced vs. Willy Food | Batm Advanced vs. Computer Direct |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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