Correlation Between SBA Communications and Beijing Media
Can any of the company-specific risk be diversified away by investing in both SBA Communications 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 SBA Communications and Beijing Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBA Communications Corp and Beijing Media, you can compare the effects of market volatilities on SBA Communications 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 SBA Communications with a short position of Beijing Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBA Communications and Beijing Media.
Diversification Opportunities for SBA Communications and Beijing Media
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between SBA and Beijing is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding SBA Communications Corp and Beijing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Media and SBA Communications 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 SBA Communications Corp 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 SBA Communications i.e., SBA Communications and Beijing Media go up and down completely randomly.
Pair Corralation between SBA Communications and Beijing Media
Assuming the 90 days trading horizon SBA Communications Corp is expected to under-perform the Beijing Media. But the stock apears to be less risky and, when comparing its historical volatility, SBA Communications Corp is 3.45 times less risky than Beijing Media. The stock trades about -0.02 of its potential returns per unit of risk. The Beijing Media is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5.80 in Beijing Media on September 3, 2024 and sell it today you would lose (2.60) from holding Beijing Media or give up 44.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBA Communications Corp vs. Beijing Media
Performance |
| Timeline |
| SBA Communications Corp |
| Beijing Media |
SBA Communications and Beijing Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBA Communications and Beijing Media
The main advantage of trading using opposite SBA Communications and Beijing Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBA Communications 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.| SBA Communications vs. Luckin Coffee | SBA Communications vs. REVO INSURANCE SPA | SBA Communications vs. Selective Insurance Group | SBA Communications vs. Goosehead Insurance |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |