Correlation Between Batm Advanced and Altshuler Shaham

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

Diversification Opportunities for Batm Advanced and Altshuler Shaham

-0.74

Correlation Coefficient

Batm Advanced  Altshuler Shaham

Pay attention - limited upside

The 3 months correlation between Batm and Altshuler is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Altshuler Shaham Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altshuler Shaham Fin 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 Altshuler Shaham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altshuler Shaham Fin has no effect on the direction of Batm Advanced i.e., Batm Advanced and Altshuler Shaham go up and down completely randomly.

Pair Corralation between Batm Advanced and Altshuler Shaham

Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the Altshuler Shaham. But the stock apears to be less risky and, when comparing its historical volatility, Batm Advanced Communications is 1.09 times less risky than Altshuler Shaham. The stock trades about -0.06 of its potential returns per unit of risk. The Altshuler Shaham Financial is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  62,803  in Altshuler Shaham Financial on October 25, 2024 and sell it today you would earn a total of  227.00  from holding Altshuler Shaham Financial or generate 0.36% return on investment over 90 days.

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

Batm Advanced Communications  vs.  Altshuler Shaham Financial

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. Despite latest weak performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Altshuler Shaham Fin

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Altshuler Shaham Financial are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Altshuler Shaham is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Batm Advanced and Altshuler Shaham

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

The idea behind Batm Advanced Communications and Altshuler Shaham Financial 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.