Correlation Between Monster Beverage and Atresmedia
Can any of the company-specific risk be diversified away by investing in both Monster Beverage and Atresmedia 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 Monster Beverage and Atresmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monster Beverage Corp and Atresmedia, you can compare the effects of market volatilities on Monster Beverage and Atresmedia 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 Monster Beverage with a short position of Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monster Beverage and Atresmedia.
Diversification Opportunities for Monster Beverage and Atresmedia
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Monster and Atresmedia is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Monster Beverage Corp and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia and Monster Beverage 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 Monster Beverage Corp are associated (or correlated) with Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of Monster Beverage i.e., Monster Beverage and Atresmedia go up and down completely randomly.
Pair Corralation between Monster Beverage and Atresmedia
Assuming the 90 days trading horizon Monster Beverage Corp is expected to under-perform the Atresmedia. But the stock apears to be less risky and, when comparing its historical volatility, Monster Beverage Corp is 1.14 times less risky than Atresmedia. The stock trades about -0.24 of its potential returns per unit of risk. The Atresmedia is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 437.00 in Atresmedia on October 30, 2024 and sell it today you would lose (3.00) from holding Atresmedia or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
Monster Beverage Corp vs. Atresmedia
Performance |
| Timeline |
| Monster Beverage Corp |
| Atresmedia |
Monster Beverage and Atresmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monster Beverage and Atresmedia
The main advantage of trading using opposite Monster Beverage and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monster Beverage position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia's long position.| Monster Beverage vs. Griffin Mining | Monster Beverage vs. Axway Software SA | Monster Beverage vs. Vitec Software Group | Monster Beverage vs. Melia Hotels |
| Atresmedia vs. Molson Coors Beverage | Atresmedia vs. Tyson Foods Cl | Atresmedia vs. Monster Beverage Corp | Atresmedia vs. Fulcrum Metals PLC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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