Correlation Between News Corp and Vodafone Group
Can any of the company-specific risk be diversified away by investing in both News Corp and Vodafone Group 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 Vodafone Group 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 Vodafone Group PLC, you can compare the effects of market volatilities on News Corp and Vodafone Group 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 Vodafone Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and Vodafone Group.
Diversification Opportunities for News Corp and Vodafone Group
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between News and Vodafone is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding News Corp Cl and Vodafone Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vodafone Group PLC 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 Vodafone Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vodafone Group PLC has no effect on the direction of News Corp i.e., News Corp and Vodafone Group go up and down completely randomly.
Pair Corralation between News Corp and Vodafone Group
Assuming the 90 days trading horizon News Corp Cl is expected to generate 0.55 times more return on investment than Vodafone Group. However, News Corp Cl is 1.81 times less risky than Vodafone Group. It trades about 0.21 of its potential returns per unit of risk. Vodafone Group PLC is currently generating about -0.07 per unit of risk. If you would invest 2,742 in News Corp Cl on August 31, 2024 and sell it today you would earn a total of 164.00 from holding News Corp Cl or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
News Corp Cl vs. Vodafone Group PLC
Performance |
| Timeline |
| News Corp Cl |
| Vodafone Group PLC |
News Corp and Vodafone Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with News Corp and Vodafone Group
The main advantage of trading using opposite News Corp and Vodafone Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News Corp position performs unexpectedly, Vodafone Group 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 Vodafone Group will offset losses from the drop in Vodafone Group'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 |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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