Correlation Between Atresmedia and Supply@Me Capital
Can any of the company-specific risk be diversified away by investing in both Atresmedia and Supply@Me Capital 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 Supply@Me Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atresmedia and SupplyMe Capital PLC, you can compare the effects of market volatilities on Atresmedia and Supply@Me Capital 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 Supply@Me Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia and Supply@Me Capital.
Diversification Opportunities for Atresmedia and Supply@Me Capital
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atresmedia and Supply@Me is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia and SupplyMe Capital PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SupplyMe Capital PLC 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 Supply@Me Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SupplyMe Capital PLC has no effect on the direction of Atresmedia i.e., Atresmedia and Supply@Me Capital go up and down completely randomly.
Pair Corralation between Atresmedia and Supply@Me Capital
Assuming the 90 days trading horizon Atresmedia is expected to generate 14.78 times less return on investment than Supply@Me Capital. But when comparing it to its historical volatility, Atresmedia is 46.88 times less risky than Supply@Me Capital. It trades about 0.49 of its potential returns per unit of risk. SupplyMe Capital PLC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 0.30 in SupplyMe Capital PLC on November 27, 2024 and sell it today you would earn a total of 0.11 from holding SupplyMe Capital PLC or generate 36.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atresmedia vs. SupplyMe Capital PLC
Performance |
| Timeline |
| Atresmedia |
| SupplyMe Capital PLC |
Atresmedia and Supply@Me Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atresmedia and Supply@Me Capital
The main advantage of trading using opposite Atresmedia and Supply@Me Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia position performs unexpectedly, Supply@Me Capital 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 Supply@Me Capital will offset losses from the drop in Supply@Me Capital's long position.| Atresmedia vs. Zoom Video Communications | Atresmedia vs. MTI Wireless Edge | Atresmedia vs. Kinnevik Investment AB | Atresmedia vs. mobilezone holding AG |
| Supply@Me Capital vs. Premier Foods PLC | Supply@Me Capital vs. Associated British Foods | Supply@Me Capital vs. Fevertree Drinks Plc | Supply@Me Capital vs. Sligro Food Group |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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