Correlation Between Batm Advanced and Rimon Consulting

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

Diversification Opportunities for Batm Advanced and Rimon Consulting

0.26

Correlation Coefficient

Batm Advanced  Rimon Consulting

Modest diversification

The 3 months correlation between Batm and Rimon is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Rimon Consulting Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rimon Consulting Man 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 Rimon Consulting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rimon Consulting Man has no effect on the direction of Batm Advanced i.e., Batm Advanced and Rimon Consulting go up and down completely randomly.

Pair Corralation between Batm Advanced and Rimon Consulting

Assuming the 90 days trading horizon Batm Advanced is expected to generate 26.63 times less return on investment than Rimon Consulting. In addition to that, Batm Advanced is 1.15 times more volatile than Rimon Consulting Management. It trades about 0.01 of its total potential returns per unit of risk. Rimon Consulting Management is currently generating about 0.24 per unit of volatility. If you would invest  431,900  in Rimon Consulting Management on April 23, 2025 and sell it today you would earn a total of  131,100  from holding Rimon Consulting Management or generate 30.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Batm Advanced Communications  vs.  Rimon Consulting Management

Batm Advanced Commun

Risk-Adjusted Performance

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.

Rimon Consulting Man

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rimon Consulting Management are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Rimon Consulting sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Batm Advanced and Rimon Consulting

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

The idea behind Batm Advanced Communications and Rimon Consulting Management 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.