Correlation Between Atresmedia and Beeks Trading
Can any of the company-specific risk be diversified away by investing in both Atresmedia and Beeks Trading 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 Beeks Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atresmedia and Beeks Trading, you can compare the effects of market volatilities on Atresmedia and Beeks Trading 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 Beeks Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia and Beeks Trading.
Diversification Opportunities for Atresmedia and Beeks Trading
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Atresmedia and Beeks is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia and Beeks Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beeks Trading 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 Beeks Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beeks Trading has no effect on the direction of Atresmedia i.e., Atresmedia and Beeks Trading go up and down completely randomly.
Pair Corralation between Atresmedia and Beeks Trading
Assuming the 90 days trading horizon Atresmedia is expected to generate 0.64 times more return on investment than Beeks Trading. However, Atresmedia is 1.57 times less risky than Beeks Trading. It trades about 0.01 of its potential returns per unit of risk. Beeks Trading is currently generating about -0.17 per unit of risk. If you would invest 453.00 in Atresmedia on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Atresmedia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atresmedia vs. Beeks Trading
Performance |
| Timeline |
| Atresmedia |
| Beeks Trading |
Atresmedia and Beeks Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atresmedia and Beeks Trading
The main advantage of trading using opposite Atresmedia and Beeks Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia position performs unexpectedly, Beeks Trading 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 Beeks Trading will offset losses from the drop in Beeks Trading's long position.| Atresmedia vs. Sligro Food Group | Atresmedia vs. Ashtead Technology Holdings | Atresmedia vs. Allianz Technology Trust | Atresmedia vs. Celebrus Technologies plc |
| Beeks Trading vs. Charter Communications Cl | Beeks Trading vs. Zoom Video Communications | Beeks Trading vs. Creo Medical Group | Beeks Trading vs. Tata Steel Limited |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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