Correlation Between Kinnevik Investment and Atresmedia
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment and Atresmedia 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 Kinnevik Investment and Atresmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinnevik Investment AB and Atresmedia, you can compare the effects of market volatilities on Kinnevik Investment and Atresmedia 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 Kinnevik Investment with a short position of Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Atresmedia.
Diversification Opportunities for Kinnevik Investment and Atresmedia
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinnevik and Atresmedia is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia and Kinnevik Investment 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 Kinnevik Investment AB are associated (or correlated) with Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Atresmedia go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Atresmedia
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to under-perform the Atresmedia. In addition to that, Kinnevik Investment is 1.99 times more volatile than Atresmedia. It trades about -0.05 of its total potential returns per unit of risk. Atresmedia is currently generating about 0.09 per unit of volatility. If you would invest 275.00 in Atresmedia on September 2, 2024 and sell it today you would earn a total of 178.00 from holding Atresmedia or generate 64.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.62% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Atresmedia
Performance |
| Timeline |
| Kinnevik Investment |
| Atresmedia |
Kinnevik Investment and Atresmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Atresmedia
The main advantage of trading using opposite Kinnevik Investment and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia's long position.| Kinnevik Investment vs. Intermediate Capital Group | Kinnevik Investment vs. AcadeMedia AB | Kinnevik Investment vs. International Biotechnology Trust | Kinnevik Investment vs. Flutter Entertainment PLC |
| Atresmedia vs. Uniper SE | Atresmedia vs. Mulberry Group PLC | Atresmedia vs. London Security Plc | Atresmedia vs. Triad Group PLC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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