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
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Menif and Batm is -0.5. 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 1.07 times more return on investment than Batm Advanced. However, Menif Financial is 1.07 times more volatile than Batm Advanced Communications. It trades about 0.12 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 109,979 in Menif Financial Services on November 3, 2024 and sell it today you would earn a total of 64,321 from holding Menif Financial Services or generate 58.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very 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. Sofwave Medical | Menif Financial vs. Epitomee Medical | Menif Financial vs. Payment Financial Technologies | Menif Financial vs. B Communications |
| Batm Advanced vs. Aura Investments | Batm Advanced vs. Skyline Investments | Batm Advanced vs. One Software Technologies | Batm Advanced 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |