Correlation Between Batm Advanced and Fidelity National

Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Fidelity National 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 Fidelity National 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 Fidelity National Information, you can compare the effects of market volatilities on Batm Advanced and Fidelity National 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 Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Fidelity National.

Diversification Opportunities for Batm Advanced and Fidelity National

0.54

Correlation Coefficient

Batm Advanced  Fidelity National

Very weak diversification

The 3 months correlation between Batm and Fidelity is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National 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 Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of Batm Advanced i.e., Batm Advanced and Fidelity National go up and down completely randomly.

Pair Corralation between Batm Advanced and Fidelity National

Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the Fidelity National. In addition to that, Batm Advanced is 1.19 times more volatile than Fidelity National Information. It trades about -0.14 of its total potential returns per unit of risk. Fidelity National Information is currently generating about -0.05 per unit of volatility. If you would invest  7,977  in Fidelity National Information on December 30, 2024 and sell it today you would lose (587.00) from holding Fidelity National Information or give up 7.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Batm Advanced Communications  vs.  Fidelity National Information

Batm Advanced Commun

Risk-Adjusted Performance

Very Weak

Over the last 90 days Batm Advanced Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Fidelity National

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelity National Information has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Fidelity National is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Batm Advanced and Fidelity National

The main advantage of trading using opposite Batm Advanced and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Fidelity National 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 Fidelity National will offset losses from the drop in Fidelity National's long position.

The idea behind Batm Advanced Communications and Fidelity National Information pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.