Correlation Between News Corp and Federal Realty
Can any of the company-specific risk be diversified away by investing in both News Corp and Federal Realty 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 News Corp and Federal Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between News Corp Cl and Federal Realty Investment, you can compare the effects of market volatilities on News Corp and Federal Realty 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 News Corp with a short position of Federal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and Federal Realty.
Diversification Opportunities for News Corp and Federal Realty
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between News and Federal is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding News Corp Cl and Federal Realty Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Realty Investment and News Corp 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 News Corp Cl are associated (or correlated) with Federal Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Realty Investment has no effect on the direction of News Corp i.e., News Corp and Federal Realty go up and down completely randomly.
Pair Corralation between News Corp and Federal Realty
Assuming the 90 days trading horizon News Corp Cl is expected to generate 1.67 times more return on investment than Federal Realty. However, News Corp is 1.67 times more volatile than Federal Realty Investment. It trades about 0.24 of its potential returns per unit of risk. Federal Realty Investment is currently generating about 0.3 per unit of risk. If you would invest 2,727 in News Corp Cl on September 1, 2024 and sell it today you would earn a total of 187.00 from holding News Corp Cl or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
News Corp Cl vs. Federal Realty Investment
Performance |
| Timeline |
| News Corp Cl |
| Federal Realty Investment |
News Corp and Federal Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with News Corp and Federal Realty
The main advantage of trading using opposite News Corp and Federal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News Corp position performs unexpectedly, Federal Realty 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 Federal Realty will offset losses from the drop in Federal Realty's long position.| News Corp vs. Federal Realty Investment | News Corp vs. Concurrent Technologies Plc | News Corp vs. TR Property Investment | News Corp vs. FC Investment Trust |
| Federal Realty vs. FC Investment Trust | Federal Realty vs. Batm Advanced Communications | Federal Realty vs. Verizon Communications | Federal Realty vs. Cellnex Telecom SA |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |