Correlation Between Batm Advanced and United Internet
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and United Internet 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 Batm Advanced and United Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Batm Advanced Communications and United Internet AG, you can compare the effects of market volatilities on Batm Advanced and United Internet 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 Batm Advanced with a short position of United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and United Internet.
Diversification Opportunities for Batm Advanced and United Internet
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Batm and United is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet AG and Batm Advanced 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 Batm Advanced Communications are associated (or correlated) with United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of Batm Advanced i.e., Batm Advanced and United Internet go up and down completely randomly.
Pair Corralation between Batm Advanced and United Internet
Assuming the 90 days trading horizon Batm Advanced is expected to generate 17.95 times less return on investment than United Internet. In addition to that, Batm Advanced is 1.1 times more volatile than United Internet AG. It trades about 0.01 of its total potential returns per unit of risk. United Internet AG is currently generating about 0.11 per unit of volatility. If you would invest 1,552 in United Internet AG on December 3, 2024 and sell it today you would earn a total of 204.00 from holding United Internet AG or generate 13.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Batm Advanced Communications vs. United Internet AG
Performance |
Timeline |
Batm Advanced Commun |
United Internet AG |
Batm Advanced and United Internet Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Batm Advanced and United Internet
The main advantage of trading using opposite Batm Advanced and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, United Internet 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 United Internet will offset losses from the drop in United Internet's long position.Batm Advanced vs. CNH Industrial NV | Batm Advanced vs. Metals Exploration Plc | Batm Advanced vs. Central Asia Metals | Batm Advanced vs. Odfjell Drilling |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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