Correlation Between News Corp and Markel Corp
Can any of the company-specific risk be diversified away by investing in both News Corp and Markel Corp 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 Markel Corp 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 Markel Corp, you can compare the effects of market volatilities on News Corp and Markel Corp 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 Markel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and Markel Corp.
Diversification Opportunities for News Corp and Markel Corp
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between News and Markel is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding News Corp Cl and Markel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markel Corp 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 Markel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markel Corp has no effect on the direction of News Corp i.e., News Corp and Markel Corp go up and down completely randomly.
Pair Corralation between News Corp and Markel Corp
Assuming the 90 days trading horizon News Corp Cl is expected to generate 1.09 times more return on investment than Markel Corp. However, News Corp is 1.09 times more volatile than Markel Corp. It trades about 0.11 of its potential returns per unit of risk. Markel Corp is currently generating about 0.06 per unit of risk. If you would invest 1,644 in News Corp Cl on August 31, 2024 and sell it today you would earn a total of 1,262 from holding News Corp Cl or generate 76.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 91.27% |
| Values | Daily Returns |
News Corp Cl vs. Markel Corp
Performance |
| Timeline |
| News Corp Cl |
| Markel Corp |
News Corp and Markel Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with News Corp and Markel Corp
The main advantage of trading using opposite News Corp and Markel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News Corp position performs unexpectedly, Markel Corp 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 Markel Corp will offset losses from the drop in Markel Corp's long position.| News Corp vs. CompuGroup Medical AG | News Corp vs. Tyson Foods Cl | News Corp vs. Fevertree Drinks Plc | News Corp vs. Monster Beverage Corp |
| Markel Corp vs. Tatton Asset Management | Markel Corp vs. Litigation Capital Management | Markel Corp vs. Oakley Capital Investments | Markel Corp vs. Coor Service Management |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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