Correlation Between St Galler and One Media
Can any of the company-specific risk be diversified away by investing in both St Galler and One Media 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 St Galler and One Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Galler Kantonalbank and One Media iP, you can compare the effects of market volatilities on St Galler and One Media 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 St Galler with a short position of One Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and One Media.
Diversification Opportunities for St Galler and One Media
Weak diversification
The 3 months correlation between 0QQZ and One is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank and One Media iP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Media iP and St Galler 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 St Galler Kantonalbank are associated (or correlated) with One Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Media iP has no effect on the direction of St Galler i.e., St Galler and One Media go up and down completely randomly.
Pair Corralation between St Galler and One Media
Assuming the 90 days trading horizon St Galler Kantonalbank is expected to under-perform the One Media. But the stock apears to be less risky and, when comparing its historical volatility, St Galler Kantonalbank is 3.64 times less risky than One Media. The stock trades about -0.01 of its potential returns per unit of risk. The One Media iP is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 409.00 in One Media iP on December 4, 2024 and sell it today you would earn a total of 6.00 from holding One Media iP or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
St Galler Kantonalbank vs. One Media iP
Performance |
| Timeline |
| St Galler Kantonalbank |
| One Media iP |
St Galler and One Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and One Media
The main advantage of trading using opposite St Galler and One Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler position performs unexpectedly, One Media 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 One Media will offset losses from the drop in One Media's long position.| St Galler vs. Compagnie Plastic Omnium | St Galler vs. Pets at Home | St Galler vs. International Consolidated Airlines | St Galler vs. Fevertree Drinks Plc |
| One Media vs. Virgin Wines UK | One Media vs. Veolia Environnement VE | One Media vs. Coor Service Management | One Media vs. Impax Environmental Markets |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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