Correlation Between G Willi and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both G Willi 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 G Willi and Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Willi Food International and Batm Advanced Communications, you can compare the effects of market volatilities on G Willi 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 G Willi with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and Batm Advanced.
Diversification Opportunities for G Willi and Batm Advanced
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WILC and Batm is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International 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 G Willi 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 G Willi Food International 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 G Willi i.e., G Willi and Batm Advanced go up and down completely randomly.
Pair Corralation between G Willi and Batm Advanced
Assuming the 90 days trading horizon G Willi Food International is expected to under-perform the Batm Advanced. But the stock apears to be less risky and, when comparing its historical volatility, G Willi Food International is 1.2 times less risky than Batm Advanced. The stock trades about -0.11 of its potential returns per unit of risk. The Batm Advanced Communications is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 8,570 in Batm Advanced Communications on October 23, 2024 and sell it today you would lose (160.00) from holding Batm Advanced Communications or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G Willi Food International vs. Batm Advanced Communications
Performance |
| Timeline |
| G Willi Food |
| Batm Advanced Commun |
G Willi and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Willi and Batm Advanced
The main advantage of trading using opposite G Willi and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi 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.| G Willi vs. XTL Biopharmaceuticals Ltd | G Willi vs. Intercure | G Willi vs. BioLine RX | G Willi vs. Foresight Autonomous Holdings |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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