Correlation Between Photomyne and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Photomyne 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 Photomyne and Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Photomyne and Batm Advanced Communications, you can compare the effects of market volatilities on Photomyne 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 Photomyne with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Photomyne and Batm Advanced.
Diversification Opportunities for Photomyne and Batm Advanced
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Photomyne and Batm is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Photomyne 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 Photomyne 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 Photomyne 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 Photomyne i.e., Photomyne and Batm Advanced go up and down completely randomly.
Pair Corralation between Photomyne and Batm Advanced
Assuming the 90 days trading horizon Photomyne is expected to generate 0.69 times more return on investment than Batm Advanced. However, Photomyne is 1.44 times less risky than Batm Advanced. It trades about 0.15 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about 0.02 per unit of risk. If you would invest 230,000 in Photomyne on September 2, 2024 and sell it today you would earn a total of 48,600 from holding Photomyne or generate 21.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Photomyne vs. Batm Advanced Communications
Performance |
| Timeline |
| Photomyne |
| Batm Advanced Commun |
Photomyne and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Photomyne and Batm Advanced
The main advantage of trading using opposite Photomyne and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Photomyne 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.| Photomyne vs. Oron Group Investments | Photomyne vs. Rapac Communication Infrastructure | Photomyne vs. Suny Cellular Communication | Photomyne vs. Willy Food |
| Batm Advanced vs. Brainsway | Batm Advanced vs. Mivne Real Estate | Batm Advanced vs. Photomyne | Batm Advanced vs. Israel Land Development |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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