Correlation Between IBI Inv and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both IBI Inv 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 IBI Inv and Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IBI Inv House and Batm Advanced Communications, you can compare the effects of market volatilities on IBI Inv 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 IBI Inv with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBI Inv and Batm Advanced.
Diversification Opportunities for IBI Inv and Batm Advanced
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IBI and Batm is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding IBI Inv House 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 IBI Inv 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 IBI Inv House 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 IBI Inv i.e., IBI Inv and Batm Advanced go up and down completely randomly.
Pair Corralation between IBI Inv and Batm Advanced
Assuming the 90 days trading horizon IBI Inv House is expected to generate 0.98 times more return on investment than Batm Advanced. However, IBI Inv House is 1.02 times less risky than Batm Advanced. It trades about 0.7 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 1,780,000 in IBI Inv House on November 8, 2024 and sell it today you would earn a total of 270,000 from holding IBI Inv House or generate 15.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IBI Inv House vs. Batm Advanced Communications
Performance |
| Timeline |
| IBI Inv House |
| Batm Advanced Commun |
IBI Inv and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IBI Inv and Batm Advanced
The main advantage of trading using opposite IBI Inv and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBI Inv 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.| IBI Inv vs. Shagrir Group Vehicle | IBI Inv vs. Arad Investment Industrial | IBI Inv vs. Payment Financial Technologies | IBI Inv vs. Automatic Bank Services |
| Batm Advanced vs. Electreon Wireless | Batm Advanced vs. Payment Financial Technologies | Batm Advanced vs. Rimon Consulting Management | 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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