Correlation Between Batm Advanced and Ruffer Investment

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

Diversification Opportunities for Batm Advanced and Ruffer Investment

0.49

Correlation Coefficient

Batm Advanced  Ruffer Investment

Very weak diversification

The 3 months correlation between Batm and Ruffer is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Ruffer Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ruffer Investment 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 Ruffer Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ruffer Investment has no effect on the direction of Batm Advanced i.e., Batm Advanced and Ruffer Investment go up and down completely randomly.

Pair Corralation between Batm Advanced and Ruffer Investment

Assuming the 90 days trading horizon Batm Advanced Communications is expected to generate 7.61 times more return on investment than Ruffer Investment. However, Batm Advanced is 7.61 times more volatile than Ruffer Investment. It trades about 0.09 of its potential returns per unit of risk. Ruffer Investment is currently generating about 0.12 per unit of risk. 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	Weak
Accuracy	98.44%
Values	Daily Returns

Batm Advanced Communications  vs.  Ruffer Investment

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.

Ruffer Investment

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ruffer Investment are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Ruffer Investment is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Batm Advanced and Ruffer Investment

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

The idea behind Batm Advanced Communications and Ruffer Investment 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.