Correlation Between Batm Advanced and Glassbox

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

Diversification Opportunities for Batm Advanced and Glassbox

0.29

Correlation Coefficient

Batm Advanced  Glassbox

Modest diversification

The 3 months correlation between Batm and Glassbox is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Glassbox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glassbox 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 Glassbox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glassbox has no effect on the direction of Batm Advanced i.e., Batm Advanced and Glassbox go up and down completely randomly.

Pair Corralation between Batm Advanced and Glassbox

If you would invest (100.00) in Glassbox on September 3, 2024 and sell it today you would earn a total of  100.00  from holding Glassbox or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

Batm Advanced Communications  vs.  Glassbox

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 weak performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Glassbox

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Glassbox has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Glassbox 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 Glassbox

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

The idea behind Batm Advanced Communications and Glassbox 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.