Correlation Between Menif Financial and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Menif Financial 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 Menif Financial and Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Menif Financial Services and Batm Advanced Communications, you can compare the effects of market volatilities on Menif Financial 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 Menif Financial with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menif Financial and Batm Advanced.
Diversification Opportunities for Menif Financial and Batm Advanced
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Menif and Batm is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Menif Financial Services 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 Menif Financial 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 Menif Financial Services 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 Menif Financial i.e., Menif Financial and Batm Advanced go up and down completely randomly.
Pair Corralation between Menif Financial and Batm Advanced
Assuming the 90 days trading horizon Menif Financial Services is expected to generate 0.9 times more return on investment than Batm Advanced. However, Menif Financial Services is 1.11 times less risky than Batm Advanced. It trades about 0.11 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about -0.04 per unit of risk. If you would invest 85,378 in Menif Financial Services on August 31, 2024 and sell it today you would earn a total of 62,622 from holding Menif Financial Services or generate 73.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menif Financial Services vs. Batm Advanced Communications
Performance |
| Timeline |
| Menif Financial Services |
| Batm Advanced Commun |
Menif Financial and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menif Financial and Batm Advanced
The main advantage of trading using opposite Menif Financial and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menif Financial 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.| Menif Financial vs. Isracard | Menif Financial vs. Jacob Finance And | Menif Financial vs. Bull Trading And | Menif Financial vs. Blender Financial Technologies |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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