Correlation Between Caledonia Mining and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Caledonia Mining 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 Caledonia Mining and Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caledonia Mining and Batm Advanced Communications, you can compare the effects of market volatilities on Caledonia Mining 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 Caledonia Mining with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caledonia Mining and Batm Advanced.
Diversification Opportunities for Caledonia Mining and Batm Advanced
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Caledonia and Batm is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Caledonia Mining 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 Caledonia Mining 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 Caledonia Mining 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 Caledonia Mining i.e., Caledonia Mining and Batm Advanced go up and down completely randomly.
Pair Corralation between Caledonia Mining and Batm Advanced
Assuming the 90 days trading horizon Caledonia Mining is expected to generate 1.37 times more return on investment than Batm Advanced. However, Caledonia Mining is 1.37 times more volatile than Batm Advanced Communications. It trades about 0.24 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about 0.17 per unit of risk. If you would invest 156,582 in Caledonia Mining on July 20, 2025 and sell it today you would earn a total of 102,418 from holding Caledonia Mining or generate 65.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caledonia Mining vs. Batm Advanced Communications
Performance |
| Timeline |
| Caledonia Mining |
| Batm Advanced Commun |
Caledonia Mining and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caledonia Mining and Batm Advanced
The main advantage of trading using opposite Caledonia Mining and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caledonia Mining 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.| Caledonia Mining vs. First Class Metals | Caledonia Mining vs. Herald Investment Trust | Caledonia Mining vs. Ruffer Investment | Caledonia Mining vs. EJF Investments |
| Batm Advanced vs. Ryanair Holdings plc | Batm Advanced vs. Electronic Arts | Batm Advanced vs. STMicroelectronics NV | Batm Advanced vs. Datagroup SE |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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