Correlation Between Batm Advanced and Thor Explorations

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

Diversification Opportunities for Batm Advanced and Thor Explorations

0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Batm and Thor is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Thor Explorations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Explorations 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 Thor Explorations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Explorations has no effect on the direction of Batm Advanced i.e., Batm Advanced and Thor Explorations go up and down completely randomly.

Pair Corralation between Batm Advanced and Thor Explorations

Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the Thor Explorations. In addition to that, Batm Advanced is 1.19 times more volatile than Thor Explorations. It trades about -0.2 of its total potential returns per unit of risk. Thor Explorations is currently generating about -0.17 per unit of volatility. If you would invest  4,250  in Thor Explorations on April 15, 2025 and sell it today you would lose (250.00) from holding Thor Explorations or give up 5.88% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Batm Advanced Communications  vs.  Thor Explorations

 Performance 
       Timeline  
Batm Advanced Commun 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
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.
Thor Explorations 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Thor Explorations are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Thor Explorations exhibited solid returns over the last few months and may actually be approaching a breakup point.

Batm Advanced and Thor Explorations Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Batm Advanced and Thor Explorations

The main advantage of trading using opposite Batm Advanced and Thor Explorations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Thor Explorations 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 Thor Explorations will offset losses from the drop in Thor Explorations' long position.
The idea behind Batm Advanced Communications and Thor Explorations 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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