Correlation Between News Corp and Autins Group
Can any of the company-specific risk be diversified away by investing in both News Corp and Autins 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 Autins 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 Autins Group plc, you can compare the effects of market volatilities on News Corp and Autins 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 Autins Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and Autins Group.
Diversification Opportunities for News Corp and Autins Group
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between News and Autins is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding News Corp Cl and Autins Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autins 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 Autins Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autins Group plc has no effect on the direction of News Corp i.e., News Corp and Autins Group go up and down completely randomly.
Pair Corralation between News Corp and Autins Group
Assuming the 90 days trading horizon News Corp Cl is expected to generate 0.29 times more return on investment than Autins Group. However, News Corp Cl is 3.49 times less risky than Autins Group. It trades about 0.23 of its potential returns per unit of risk. Autins Group plc is currently generating about -0.28 per unit of risk. If you would invest 2,734 in News Corp Cl on September 2, 2024 and sell it today you would earn a total of 180.00 from holding News Corp Cl or generate 6.58% 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. Autins Group plc
Performance |
| Timeline |
| News Corp Cl |
| Autins Group plc |
News Corp and Autins Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with News Corp and Autins Group
The main advantage of trading using opposite News Corp and Autins Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News Corp position performs unexpectedly, Autins 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 Autins Group will offset losses from the drop in Autins Group's long position.| News Corp vs. Uniper SE | News Corp vs. Mulberry Group PLC | News Corp vs. London Security Plc | News Corp vs. Triad Group PLC |
| Autins Group vs. Auction Technology Group | Autins Group vs. Centaur Media | Autins Group vs. XLMedia PLC | Autins Group vs. Sunny Optical Technology |
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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