Correlation Between LINMON MEDIA and AUSNUTRIA DAIRY
Can any of the company-specific risk be diversified away by investing in both LINMON MEDIA and AUSNUTRIA DAIRY 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 LINMON MEDIA and AUSNUTRIA DAIRY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LINMON MEDIA LTD and AUSNUTRIA DAIRY, you can compare the effects of market volatilities on LINMON MEDIA and AUSNUTRIA DAIRY 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 LINMON MEDIA with a short position of AUSNUTRIA DAIRY. Check out your portfolio center. Please also check ongoing floating volatility patterns of LINMON MEDIA and AUSNUTRIA DAIRY.
Diversification Opportunities for LINMON MEDIA and AUSNUTRIA DAIRY
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LINMON and AUSNUTRIA is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding LINMON MEDIA LTD and AUSNUTRIA DAIRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUSNUTRIA DAIRY and LINMON MEDIA 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 LINMON MEDIA LTD are associated (or correlated) with AUSNUTRIA DAIRY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUSNUTRIA DAIRY has no effect on the direction of LINMON MEDIA i.e., LINMON MEDIA and AUSNUTRIA DAIRY go up and down completely randomly.
Pair Corralation between LINMON MEDIA and AUSNUTRIA DAIRY
Assuming the 90 days horizon LINMON MEDIA LTD is expected to under-perform the AUSNUTRIA DAIRY. In addition to that, LINMON MEDIA is 1.93 times more volatile than AUSNUTRIA DAIRY. It trades about -0.03 of its total potential returns per unit of risk. AUSNUTRIA DAIRY is currently generating about 0.01 per unit of volatility. If you would invest 23.00 in AUSNUTRIA DAIRY on November 2, 2024 and sell it today you would earn a total of 0.00 from holding AUSNUTRIA DAIRY or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LINMON MEDIA LTD vs. AUSNUTRIA DAIRY
Performance |
| Timeline |
| LINMON MEDIA LTD |
| AUSNUTRIA DAIRY |
LINMON MEDIA and AUSNUTRIA DAIRY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LINMON MEDIA and AUSNUTRIA DAIRY
The main advantage of trading using opposite LINMON MEDIA and AUSNUTRIA DAIRY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LINMON MEDIA position performs unexpectedly, AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY will offset losses from the drop in AUSNUTRIA DAIRY's long position.| LINMON MEDIA vs. Charter Communications | LINMON MEDIA vs. Warner Music Group | LINMON MEDIA vs. Superior Plus Corp | LINMON MEDIA vs. Origin Agritech |
| AUSNUTRIA DAIRY vs. GMO Internet | AUSNUTRIA DAIRY vs. Charter Communications | AUSNUTRIA DAIRY vs. Siamgas And Petrochemicals | AUSNUTRIA DAIRY vs. TRI CHEMICAL LABORATINC |
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.
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