Correlation Between FOSTOURGRP EO-0001 and Media
Can any of the company-specific risk be diversified away by investing in both FOSTOURGRP EO-0001 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 FOSTOURGRP EO-0001 and Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOSTOURGRP EO 0001 and Media and Games, you can compare the effects of market volatilities on FOSTOURGRP EO-0001 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 FOSTOURGRP EO-0001 with a short position of Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOSTOURGRP EO-0001 and Media.
Diversification Opportunities for FOSTOURGRP EO-0001 and Media
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FOSTOURGRP and Media is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding FOSTOURGRP EO 0001 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 FOSTOURGRP EO-0001 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 FOSTOURGRP EO 0001 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 FOSTOURGRP EO-0001 i.e., FOSTOURGRP EO-0001 and Media go up and down completely randomly.
Pair Corralation between FOSTOURGRP EO-0001 and Media
Assuming the 90 days horizon FOSTOURGRP EO-0001 is expected to generate 6.02 times less return on investment than Media. But when comparing it to its historical volatility, FOSTOURGRP EO 0001 is 4.74 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 0.13 of returns per unit of risk over similar time horizon. If you would invest 315.00 in Media and Games on November 30, 2024 and sell it today you would earn a total of 61.00 from holding Media and Games or generate 19.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOSTOURGRP EO 0001 vs. Media and Games
Performance |
| Timeline |
| FOSTOURGRP EO 0001 |
| Media and Games |
FOSTOURGRP EO-0001 and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOSTOURGRP EO-0001 and Media
The main advantage of trading using opposite FOSTOURGRP EO-0001 and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOSTOURGRP EO-0001 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.| FOSTOURGRP EO-0001 vs. BII Railway Transportation | FOSTOURGRP EO-0001 vs. Gold Road Resources | FOSTOURGRP EO-0001 vs. InterContinental Hotels Group | FOSTOURGRP EO-0001 vs. SAFEROADS HLDGS |
| Media vs. TELECOM PLUS | Media vs. FARO TECHNOLOGIES | Media vs. Allegheny Technologies Incorporated | Media vs. Agilent 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |