Correlation Between Atresmedia and Kinnevik Investment
Can any of the company-specific risk be diversified away by investing in both Atresmedia and Kinnevik Investment 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 Kinnevik Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atresmedia and Kinnevik Investment AB, you can compare the effects of market volatilities on Atresmedia and Kinnevik Investment 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 Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia and Kinnevik Investment.
Diversification Opportunities for Atresmedia and Kinnevik Investment
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atresmedia and Kinnevik is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment 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 Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of Atresmedia i.e., Atresmedia and Kinnevik Investment go up and down completely randomly.
Pair Corralation between Atresmedia and Kinnevik Investment
Assuming the 90 days trading horizon Atresmedia is expected to generate 0.48 times more return on investment than Kinnevik Investment. However, Atresmedia is 2.06 times less risky than Kinnevik Investment. It trades about -0.07 of its potential returns per unit of risk. Kinnevik Investment AB is currently generating about -0.12 per unit of risk. If you would invest 513.00 in Atresmedia on September 2, 2024 and sell it today you would lose (60.00) from holding Atresmedia or give up 11.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
Atresmedia vs. Kinnevik Investment AB
Performance |
| Timeline |
| Atresmedia |
| Kinnevik Investment |
Atresmedia and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atresmedia and Kinnevik Investment
The main advantage of trading using opposite Atresmedia and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's long position.| Atresmedia vs. Uniper SE | Atresmedia vs. Mulberry Group PLC | Atresmedia vs. London Security Plc | Atresmedia vs. Triad Group PLC |
| Kinnevik Investment vs. Intermediate Capital Group | Kinnevik Investment vs. AcadeMedia AB | Kinnevik Investment vs. International Biotechnology Trust | Kinnevik Investment vs. Flutter Entertainment PLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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