Correlation Between Ross Stores and Batm Advanced

Can any of the company-specific risk be diversified away by investing in both Ross Stores and Batm Advanced 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 Ross Stores and Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ross Stores and Batm Advanced Communications, you can compare the effects of market volatilities on Ross Stores and Batm Advanced 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 Ross Stores with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ross Stores and Batm Advanced.

Diversification Opportunities for Ross Stores and Batm Advanced

0.05

Correlation Coefficient

Ross Stores  Batm Advanced

Significant diversification

The 3 months correlation between Ross and Batm is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ross Stores and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun and Ross Stores 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 Ross Stores are associated (or correlated) with Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of Ross Stores i.e., Ross Stores and Batm Advanced go up and down completely randomly.

Pair Corralation between Ross Stores and Batm Advanced

Assuming the 90 days trading horizon Ross Stores is expected to under-perform the Batm Advanced. But the stock apears to be less risky and, when comparing its historical volatility, Ross Stores is 1.25 times less risky than Batm Advanced. The stock trades about -0.02 of its potential returns per unit of risk. The Batm Advanced Communications is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,375  in Batm Advanced Communications on April 22, 2025 and sell it today you would earn a total of  183.00  from holding Batm Advanced Communications or generate 13.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Ross Stores  vs.  Batm Advanced Communications

Ross Stores

Risk-Adjusted Performance

Very Weak

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

Batm Advanced Commun

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Batm Advanced Communications are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Batm Advanced exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ross Stores and Batm Advanced

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

The idea behind Ross Stores and Batm Advanced Communications 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.