Correlation Between Feat Fund and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Feat Fund 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 Feat Fund and Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feat Fund Investments and Batm Advanced Communications, you can compare the effects of market volatilities on Feat Fund 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 Feat Fund with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feat Fund and Batm Advanced.
Diversification Opportunities for Feat Fund and Batm Advanced
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Feat and Batm is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Feat Fund Investments 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 Feat Fund 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 Feat Fund Investments 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 Feat Fund i.e., Feat Fund and Batm Advanced go up and down completely randomly.
Pair Corralation between Feat Fund and Batm Advanced
Assuming the 90 days trading horizon Feat Fund Investments is expected to generate 2.13 times more return on investment than Batm Advanced. However, Feat Fund is 2.13 times more volatile than Batm Advanced Communications. It trades about 0.02 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about -0.03 per unit of risk. If you would invest 15,190 in Feat Fund Investments on November 5, 2024 and sell it today you would lose (940.00) from holding Feat Fund Investments or give up 6.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Feat Fund Investments vs. Batm Advanced Communications
Performance |
| Timeline |
| Feat Fund Investments |
| Batm Advanced Commun |
Feat Fund and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feat Fund and Batm Advanced
The main advantage of trading using opposite Feat Fund and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feat Fund 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.| Feat Fund vs. Nice | Feat Fund vs. The Gold Bond | Feat Fund vs. Bank Leumi Le Israel | Feat Fund vs. ICL Israel Chemicals |
| Batm Advanced vs. Suny Cellular Communication | Batm Advanced vs. Elron Electronic Industries | Batm Advanced vs. Sofwave Medical | Batm Advanced vs. Abra Information 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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