Correlation Between Batm Advanced and Telecom Italia
Can any of the company-specific risk be diversified away by investing in both Batm Advanced and Telecom Italia 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 Telecom Italia 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 Telecom Italia SpA, you can compare the effects of market volatilities on Batm Advanced and Telecom Italia 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 Telecom Italia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Telecom Italia.
Diversification Opportunities for Batm Advanced and Telecom Italia
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Batm and Telecom is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Telecom Italia SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecom Italia SpA 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 Telecom Italia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecom Italia SpA has no effect on the direction of Batm Advanced i.e., Batm Advanced and Telecom Italia go up and down completely randomly.
Pair Corralation between Batm Advanced and Telecom Italia
Assuming the 90 days trading horizon Batm Advanced Communications is expected to generate 1.27 times more return on investment than Telecom Italia. However, Batm Advanced is 1.27 times more volatile than Telecom Italia SpA. It trades about 0.14 of its potential returns per unit of risk. Telecom Italia SpA is currently generating about 0.12 per unit of risk. If you would invest 1,548 in Batm Advanced Communications on July 27, 2025 and sell it today you would earn a total of 232.00 from holding Batm Advanced Communications or generate 14.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Batm Advanced Communications vs. Telecom Italia SpA
Performance |
| Timeline |
| Batm Advanced Commun |
| Telecom Italia SpA |
Batm Advanced and Telecom Italia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Telecom Italia
The main advantage of trading using opposite Batm Advanced and Telecom Italia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced position performs unexpectedly, Telecom Italia 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 Telecom Italia will offset losses from the drop in Telecom Italia's long position.| Batm Advanced vs. Samsung Electronics Co | Batm Advanced vs. Samsung Electronics Co | Batm Advanced vs. Samsung Electronics Co | Batm Advanced vs. Toyota Motor Corp |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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