Correlation Between G5 Entertainment and One Media
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment 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 G5 Entertainment and One 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 One Media iP, you can compare the effects of market volatilities on G5 Entertainment 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 G5 Entertainment with a short position of One Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and One Media.
Diversification Opportunities for G5 Entertainment and One Media
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0QUS and One is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment AB 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 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 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 G5 Entertainment i.e., G5 Entertainment and One Media go up and down completely randomly.
Pair Corralation between G5 Entertainment and One Media
Assuming the 90 days trading horizon G5 Entertainment AB is expected to generate 1.29 times more return on investment than One Media. However, G5 Entertainment is 1.29 times more volatile than One Media iP. It trades about 0.12 of its potential returns per unit of risk. One Media iP is currently generating about -0.04 per unit of risk. If you would invest 9,060 in G5 Entertainment AB on August 29, 2024 and sell it today you would earn a total of 690.00 from holding G5 Entertainment AB or generate 7.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G5 Entertainment AB vs. One Media iP
Performance |
| Timeline |
| G5 Entertainment |
| One Media iP |
G5 Entertainment and One Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G5 Entertainment and One Media
The main advantage of trading using opposite G5 Entertainment and One Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment 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.| G5 Entertainment vs. Infrastrutture Wireless Italiane | G5 Entertainment vs. MediaZest plc | G5 Entertainment vs. Everyman Media Group | G5 Entertainment vs. Catena Media PLC |
| One Media vs. Naked Wines plc | One Media vs. Cornish Metals | One Media vs. Cairo Communication SpA | One Media vs. Universal Display Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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