Correlation Between SQUIRREL MEDIA and INFORMATION SVC
Can any of the company-specific risk be diversified away by investing in both SQUIRREL MEDIA and INFORMATION SVC 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 INFORMATION SVC 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 INFORMATION SVC GRP, you can compare the effects of market volatilities on SQUIRREL MEDIA and INFORMATION SVC 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 INFORMATION SVC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SQUIRREL MEDIA and INFORMATION SVC.
Diversification Opportunities for SQUIRREL MEDIA and INFORMATION SVC
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SQUIRREL and INFORMATION is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding SQUIRREL MEDIA SA and INFORMATION SVC GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFORMATION SVC GRP 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 INFORMATION SVC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFORMATION SVC GRP has no effect on the direction of SQUIRREL MEDIA i.e., SQUIRREL MEDIA and INFORMATION SVC go up and down completely randomly.
Pair Corralation between SQUIRREL MEDIA and INFORMATION SVC
Assuming the 90 days horizon SQUIRREL MEDIA SA is expected to generate 1.63 times more return on investment than INFORMATION SVC. However, SQUIRREL MEDIA is 1.63 times more volatile than INFORMATION SVC GRP. It trades about 0.24 of its potential returns per unit of risk. INFORMATION SVC GRP is currently generating about -0.12 per unit of risk. If you would invest 118.00 in SQUIRREL MEDIA SA on October 28, 2024 and sell it today you would earn a total of 16.00 from holding SQUIRREL MEDIA SA or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SQUIRREL MEDIA SA vs. INFORMATION SVC GRP
Performance |
| Timeline |
| SQUIRREL MEDIA SA |
| INFORMATION SVC GRP |
SQUIRREL MEDIA and INFORMATION SVC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SQUIRREL MEDIA and INFORMATION SVC
The main advantage of trading using opposite SQUIRREL MEDIA and INFORMATION SVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQUIRREL MEDIA position performs unexpectedly, INFORMATION SVC 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 INFORMATION SVC will offset losses from the drop in INFORMATION SVC's long position.| SQUIRREL MEDIA vs. Alaska Air Group | SQUIRREL MEDIA vs. BORR DRILLING NEW | SQUIRREL MEDIA vs. Tower One Wireless | SQUIRREL MEDIA vs. RYANAIR HLDGS ADR |
| INFORMATION SVC vs. Apple Inc | INFORMATION SVC vs. Apple Inc | INFORMATION SVC vs. Apple Inc | INFORMATION SVC vs. Apple Inc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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