Correlation Between News Corp and Poxel SA
Can any of the company-specific risk be diversified away by investing in both News Corp and Poxel SA 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 Poxel SA 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 Poxel SA, you can compare the effects of market volatilities on News Corp and Poxel SA 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 Poxel SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and Poxel SA.
Diversification Opportunities for News Corp and Poxel SA
Excellent diversification
The 3 months correlation between News and Poxel is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding News Corp Cl and Poxel SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poxel SA 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 Poxel SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poxel SA has no effect on the direction of News Corp i.e., News Corp and Poxel SA go up and down completely randomly.
Pair Corralation between News Corp and Poxel SA
Assuming the 90 days trading horizon News Corp Cl is expected to generate 0.33 times more return on investment than Poxel SA. However, News Corp Cl is 2.99 times less risky than Poxel SA. It trades about 0.06 of its potential returns per unit of risk. Poxel SA is currently generating about -0.04 per unit of risk. If you would invest 1,884 in News Corp Cl on September 3, 2024 and sell it today you would earn a total of 1,030 from holding News Corp Cl or generate 54.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 89.36% |
| Values | Daily Returns |
News Corp Cl vs. Poxel SA
Performance |
| Timeline |
| News Corp Cl |
| Poxel SA |
News Corp and Poxel SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with News Corp and Poxel SA
The main advantage of trading using opposite News Corp and Poxel SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News Corp position performs unexpectedly, Poxel SA 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 Poxel SA will offset losses from the drop in Poxel SA's long position.| News Corp vs. Sunny Optical Technology | News Corp vs. Vitec Software Group | News Corp vs. Take Two Interactive Software | News Corp vs. Zurich Insurance Group |
| Poxel SA vs. Zegona Communications Plc | Poxel SA vs. Cairo Communication SpA | Poxel SA vs. Synthomer plc | Poxel SA vs. Ecclesiastical Insurance Office |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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