Correlation Between SQUIRREL MEDIA and DIeteren Group
Can any of the company-specific risk be diversified away by investing in both SQUIRREL MEDIA and DIeteren 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 SQUIRREL MEDIA and DIeteren Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SQUIRREL MEDIA SA and DIeteren Group SA, you can compare the effects of market volatilities on SQUIRREL MEDIA and DIeteren 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 SQUIRREL MEDIA with a short position of DIeteren Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SQUIRREL MEDIA and DIeteren Group.
Diversification Opportunities for SQUIRREL MEDIA and DIeteren Group
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between SQUIRREL and DIeteren is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding SQUIRREL MEDIA SA and DIeteren Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIeteren Group SA and SQUIRREL MEDIA 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 SQUIRREL MEDIA SA are associated (or correlated) with DIeteren Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIeteren Group SA has no effect on the direction of SQUIRREL MEDIA i.e., SQUIRREL MEDIA and DIeteren Group go up and down completely randomly.
Pair Corralation between SQUIRREL MEDIA and DIeteren Group
Assuming the 90 days horizon SQUIRREL MEDIA SA is expected to under-perform the DIeteren Group. In addition to that, SQUIRREL MEDIA is 1.26 times more volatile than DIeteren Group SA. It trades about -0.04 of its total potential returns per unit of risk. DIeteren Group SA is currently generating about 0.04 per unit of volatility. If you would invest 11,144 in DIeteren Group SA on October 30, 2024 and sell it today you would earn a total of 4,266 from holding DIeteren Group SA or generate 38.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SQUIRREL MEDIA SA vs. DIeteren Group SA
Performance |
| Timeline |
| SQUIRREL MEDIA SA |
| DIeteren Group SA |
SQUIRREL MEDIA and DIeteren Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SQUIRREL MEDIA and DIeteren Group
The main advantage of trading using opposite SQUIRREL MEDIA and DIeteren Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQUIRREL MEDIA position performs unexpectedly, DIeteren 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 DIeteren Group will offset losses from the drop in DIeteren Group's long position.| SQUIRREL MEDIA vs. Charter Communications | SQUIRREL MEDIA vs. Warner Music Group | SQUIRREL MEDIA vs. Superior Plus Corp | SQUIRREL MEDIA vs. Origin Agritech |
| DIeteren Group vs. Nucletron Electronic Aktiengesellschaft | DIeteren Group vs. De Grey Mining | DIeteren Group vs. LG Electronics | DIeteren Group vs. Nanjing Panda Electronics |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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