Correlation Between DXC Technology and Beijing Media
Can any of the company-specific risk be diversified away by investing in both DXC Technology and Beijing 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 DXC Technology and Beijing Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and Beijing Media, you can compare the effects of market volatilities on DXC Technology and Beijing 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 DXC Technology with a short position of Beijing Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Beijing Media.
Diversification Opportunities for DXC Technology and Beijing Media
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between DXC and Beijing is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and Beijing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Media and DXC Technology 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 DXC Technology Co are associated (or correlated) with Beijing Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Media has no effect on the direction of DXC Technology i.e., DXC Technology and Beijing Media go up and down completely randomly.
Pair Corralation between DXC Technology and Beijing Media
Assuming the 90 days trading horizon DXC Technology Co is expected to generate 0.62 times more return on investment than Beijing Media. However, DXC Technology Co is 1.62 times less risky than Beijing Media. It trades about 0.09 of its potential returns per unit of risk. Beijing Media is currently generating about 0.0 per unit of risk. If you would invest 1,861 in DXC Technology Co on September 3, 2024 and sell it today you would earn a total of 225.00 from holding DXC Technology Co or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DXC Technology Co vs. Beijing Media
Performance |
| Timeline |
| DXC Technology |
| Beijing Media |
DXC Technology and Beijing Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Beijing Media
The main advantage of trading using opposite DXC Technology and Beijing Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology position performs unexpectedly, Beijing 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 Beijing Media will offset losses from the drop in Beijing Media's long position.| DXC Technology vs. Apple Inc | DXC Technology vs. Apple Inc | DXC Technology vs. Apple Inc | DXC Technology vs. Apple Inc |
| Beijing Media vs. MEDICAL FACILITIES NEW | Beijing Media vs. Avanos Medical | Beijing Media vs. Diamyd Medical AB | Beijing Media vs. FARO Technologies |
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 Stocks Directory module to find actively traded stocks across global markets.
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