Correlation Between Automatic Bank and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Automatic Bank 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 Automatic Bank and Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Automatic Bank Services and Batm Advanced Communications, you can compare the effects of market volatilities on Automatic Bank 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 Automatic Bank with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Automatic Bank and Batm Advanced.
Diversification Opportunities for Automatic Bank and Batm Advanced
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Automatic and Batm is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Automatic Bank 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 Automatic Bank 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 Automatic Bank 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 Automatic Bank i.e., Automatic Bank and Batm Advanced go up and down completely randomly.
Pair Corralation between Automatic Bank and Batm Advanced
Assuming the 90 days trading horizon Automatic Bank Services is expected to generate 1.18 times more return on investment than Batm Advanced. However, Automatic Bank is 1.18 times more volatile than Batm Advanced Communications. It trades about 0.39 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about -0.08 per unit of risk. If you would invest 183,300 in Automatic Bank Services on August 31, 2024 and sell it today you would earn a total of 30,300 from holding Automatic Bank Services or generate 16.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Automatic Bank Services vs. Batm Advanced Communications
Performance |
| Timeline |
| Automatic Bank Services |
| Batm Advanced Commun |
Automatic Bank and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Automatic Bank and Batm Advanced
The main advantage of trading using opposite Automatic Bank and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automatic Bank 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.| Automatic Bank vs. Telsys | Automatic Bank vs. EN Shoham Business | Automatic Bank vs. Brainsway | Automatic Bank vs. Mivne Real Estate |
| Batm Advanced vs. Storage Drop Storage | Batm Advanced vs. Brainsway | Batm Advanced vs. Mivne Real Estate | Batm Advanced vs. Photomyne |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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