Correlation Between Payment Financial and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Payment 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 Payment 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 Payment Financial Technologies and Batm Advanced Communications, you can compare the effects of market volatilities on Payment 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 Payment Financial with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payment Financial and Batm Advanced.
Diversification Opportunities for Payment Financial and Batm Advanced
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Payment and Batm is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Payment Financial Technologies 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 Payment 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 Payment Financial Technologies 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 Payment Financial i.e., Payment Financial and Batm Advanced go up and down completely randomly.
Pair Corralation between Payment Financial and Batm Advanced
Assuming the 90 days trading horizon Payment Financial Technologies is expected to generate 2.53 times more return on investment than Batm Advanced. However, Payment Financial is 2.53 times more volatile than Batm Advanced Communications. It trades about 0.47 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about -0.06 per unit of risk. If you would invest 32,210 in Payment Financial Technologies on October 23, 2024 and sell it today you would earn a total of 11,590 from holding Payment Financial Technologies or generate 35.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Payment Financial Technologies vs. Batm Advanced Communications
Performance |
| Timeline |
| Payment Financial |
| Batm Advanced Commun |
Payment Financial and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payment Financial and Batm Advanced
The main advantage of trading using opposite Payment Financial and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payment 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.| Payment Financial vs. Meitav Dash Investments | Payment Financial vs. Clal Biotechnology Industries | Payment Financial vs. Amot Investments | Payment Financial vs. YD More Investments |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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