Correlation Between Amot Investments and Batm Advanced

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

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

Diversification Opportunities for Amot Investments and Batm Advanced

0.03

Correlation Coefficient

Amot Investments  Batm Advanced

Significant diversification

The 3 months correlation between Amot and Batm is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments 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 Amot Investments 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 Amot Investments 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 Amot Investments i.e., Amot Investments and Batm Advanced go up and down completely randomly.

Pair Corralation between Amot Investments and Batm Advanced

Assuming the 90 days trading horizon Amot Investments is expected to generate 0.68 times more return on investment than Batm Advanced. However, Amot Investments is 1.47 times less risky than Batm Advanced. It trades about 0.28 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about -0.01 per unit of risk. If you would invest  189,832  in Amot Investments on April 25, 2025 and sell it today you would earn a total of  54,768  from holding Amot Investments or generate 28.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	97.96%
Values	Daily Returns

Amot Investments  vs.  Batm Advanced Communications

Amot Investments

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amot Investments are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Amot Investments sustained solid returns over the last few months and may actually be approaching a breakup point.

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. Despite somewhat strong fundamental indicators, Batm Advanced is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amot Investments and Batm Advanced

The main advantage of trading using opposite Amot Investments and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments 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 Amot Investments 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.