Correlation Between Batm Advanced and Datagroup

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

Diversification Opportunities for Batm Advanced and Datagroup

-0.11

Correlation Coefficient

Batm Advanced  Datagroup

Good diversification

The 3 months correlation between Batm and Datagroup is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Datagroup SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datagroup SE 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 Datagroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datagroup SE has no effect on the direction of Batm Advanced i.e., Batm Advanced and Datagroup go up and down completely randomly.

Pair Corralation between Batm Advanced and Datagroup

Assuming the 90 days trading horizon Batm Advanced is expected to generate 25.02 times less return on investment than Datagroup. In addition to that, Batm Advanced is 1.3 times more volatile than Datagroup SE. It trades about 0.0 of its total potential returns per unit of risk. Datagroup SE is currently generating about 0.06 per unit of volatility. If you would invest  4,130  in Datagroup SE on October 15, 2024 and sell it today you would earn a total of  345.00  from holding Datagroup SE or generate 8.35% 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.  Datagroup SE

Batm Advanced Commun

Risk-Adjusted Performance

0 of 100

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 rather sound technical and fundamental indicators, Batm Advanced is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Datagroup SE

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Datagroup SE are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Datagroup may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Batm Advanced and Datagroup

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

The idea behind Batm Advanced Communications and Datagroup SE 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.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.