Correlation Between AFW and MediaZen
Can any of the company-specific risk be diversified away by investing in both AFW and MediaZen 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 AFW and MediaZen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AFW Co and MediaZen, you can compare the effects of market volatilities on AFW and MediaZen 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 AFW with a short position of MediaZen. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFW and MediaZen.
Diversification Opportunities for AFW and MediaZen
Very good diversification
The 3 months correlation between AFW and MediaZen is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding AFW Co and MediaZen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaZen and AFW 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 AFW Co are associated (or correlated) with MediaZen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediaZen has no effect on the direction of AFW i.e., AFW and MediaZen go up and down completely randomly.
Pair Corralation between AFW and MediaZen
If you would invest 1,130,000 in MediaZen on September 12, 2024 and sell it today you would earn a total of 0.00 from holding MediaZen or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
AFW Co vs. MediaZen
Performance |
| Timeline |
| AFW Co |
| MediaZen |
AFW and MediaZen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFW and MediaZen
The main advantage of trading using opposite AFW and MediaZen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFW position performs unexpectedly, MediaZen 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 MediaZen will offset losses from the drop in MediaZen's long position.| AFW vs. MediaZen | AFW vs. FNC Entertainment Co | AFW vs. Korea Alcohol Industrial | AFW vs. Lotte Chilsung Beverage |
| MediaZen vs. Samsung Electronics Co | MediaZen vs. Samsung Electronics Co | MediaZen vs. LG Energy Solution | MediaZen vs. SK Hynix |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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