Correlation Between Atresmedia and G5 Entertainment
Can any of the company-specific risk be diversified away by investing in both Atresmedia and G5 Entertainment 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 Atresmedia and G5 Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atresmedia and G5 Entertainment AB, you can compare the effects of market volatilities on Atresmedia and G5 Entertainment 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 Atresmedia with a short position of G5 Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia and G5 Entertainment.
Diversification Opportunities for Atresmedia and G5 Entertainment
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atresmedia and 0QUS is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia and G5 Entertainment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G5 Entertainment and Atresmedia 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 Atresmedia are associated (or correlated) with G5 Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G5 Entertainment has no effect on the direction of Atresmedia i.e., Atresmedia and G5 Entertainment go up and down completely randomly.
Pair Corralation between Atresmedia and G5 Entertainment
Assuming the 90 days trading horizon Atresmedia is expected to generate 0.54 times more return on investment than G5 Entertainment. However, Atresmedia is 1.86 times less risky than G5 Entertainment. It trades about 0.1 of its potential returns per unit of risk. G5 Entertainment AB is currently generating about -0.08 per unit of risk. If you would invest 355.00 in Atresmedia on August 29, 2024 and sell it today you would earn a total of 98.00 from holding Atresmedia or generate 27.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.57% |
| Values | Daily Returns |
Atresmedia vs. G5 Entertainment AB
Performance |
| Timeline |
| Atresmedia |
| G5 Entertainment |
Atresmedia and G5 Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atresmedia and G5 Entertainment
The main advantage of trading using opposite Atresmedia and G5 Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia position performs unexpectedly, G5 Entertainment 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 G5 Entertainment will offset losses from the drop in G5 Entertainment's long position.| Atresmedia vs. Lendinvest PLC | Atresmedia vs. Neometals | Atresmedia vs. Coor Service Management | Atresmedia vs. Albion Technology General |
| G5 Entertainment vs. Lendinvest PLC | G5 Entertainment vs. Neometals | G5 Entertainment vs. Coor Service Management | G5 Entertainment vs. Albion Technology General |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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