Correlation Between MidCap Financial and Media
Can any of the company-specific risk be diversified away by investing in both MidCap Financial and 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 MidCap Financial and Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MidCap Financial Investment and Media and Games, you can compare the effects of market volatilities on MidCap Financial and 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 MidCap Financial with a short position of Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of MidCap Financial and Media.
Diversification Opportunities for MidCap Financial and Media
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MidCap and Media is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding MidCap Financial Investment and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games and MidCap Financial 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 MidCap Financial Investment are associated (or correlated) with Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of MidCap Financial i.e., MidCap Financial and Media go up and down completely randomly.
Pair Corralation between MidCap Financial and Media
Assuming the 90 days trading horizon MidCap Financial Investment is expected to generate 0.32 times more return on investment than Media. However, MidCap Financial Investment is 3.11 times less risky than Media. It trades about -0.1 of its potential returns per unit of risk. Media and Games is currently generating about -0.18 per unit of risk. If you would invest 1,300 in MidCap Financial Investment on October 12, 2024 and sell it today you would lose (23.00) from holding MidCap Financial Investment or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
MidCap Financial Investment vs. Media and Games
Performance |
| Timeline |
| MidCap Financial Inv |
| Media and Games |
MidCap Financial and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MidCap Financial and Media
The main advantage of trading using opposite MidCap Financial and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MidCap Financial position performs unexpectedly, 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 Media will offset losses from the drop in Media's long position.| MidCap Financial vs. Jacquet Metal Service | MidCap Financial vs. Digilife Technologies Limited | MidCap Financial vs. Minerals Technologies | MidCap Financial vs. BioNTech SE |
| Media vs. Keck Seng Investments | Media vs. MidCap Financial Investment | Media vs. SLR Investment Corp | Media vs. PennantPark Investment |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |