Correlation Between G5 Entertainment and Centaur Media
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment and Centaur 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 G5 Entertainment and Centaur Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G5 Entertainment AB and Centaur Media, you can compare the effects of market volatilities on G5 Entertainment and Centaur 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 G5 Entertainment with a short position of Centaur Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and Centaur Media.
Diversification Opportunities for G5 Entertainment and Centaur Media
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0QUS and Centaur is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment AB and Centaur Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Media and G5 Entertainment 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 G5 Entertainment AB are associated (or correlated) with Centaur Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Media has no effect on the direction of G5 Entertainment i.e., G5 Entertainment and Centaur Media go up and down completely randomly.
Pair Corralation between G5 Entertainment and Centaur Media
Assuming the 90 days trading horizon G5 Entertainment AB is expected to under-perform the Centaur Media. In addition to that, G5 Entertainment is 1.04 times more volatile than Centaur Media. It trades about -0.04 of its total potential returns per unit of risk. Centaur Media is currently generating about -0.04 per unit of volatility. If you would invest 4,205 in Centaur Media on August 31, 2024 and sell it today you would lose (1,955) from holding Centaur Media or give up 46.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
G5 Entertainment AB vs. Centaur Media
Performance |
| Timeline |
| G5 Entertainment |
| Centaur Media |
G5 Entertainment and Centaur Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G5 Entertainment and Centaur Media
The main advantage of trading using opposite G5 Entertainment and Centaur Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment position performs unexpectedly, Centaur 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 Centaur Media will offset losses from the drop in Centaur Media's long position.| G5 Entertainment vs. Neometals | G5 Entertainment vs. Coor Service Management | G5 Entertainment vs. Aeorema Communications Plc | G5 Entertainment vs. JLEN Environmental Assets |
| Centaur Media vs. Cornish Metals | Centaur Media vs. Silvercorp Metals | Centaur Media vs. HCA Healthcare | Centaur Media vs. Target Healthcare REIT |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |