Correlation Between Atresmedia Corporacin and Gigas Hosting
Can any of the company-specific risk be diversified away by investing in both Atresmedia Corporacin and Gigas Hosting 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 Atresmedia Corporacin and Gigas Hosting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atresmedia Corporacin de and Gigas Hosting SA, you can compare the effects of market volatilities on Atresmedia Corporacin and Gigas Hosting 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 Atresmedia Corporacin with a short position of Gigas Hosting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia Corporacin and Gigas Hosting.
Diversification Opportunities for Atresmedia Corporacin and Gigas Hosting
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atresmedia and Gigas is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia Corporacin de and Gigas Hosting SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gigas Hosting SA and Atresmedia Corporacin 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 Atresmedia Corporacin de are associated (or correlated) with Gigas Hosting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gigas Hosting SA has no effect on the direction of Atresmedia Corporacin i.e., Atresmedia Corporacin and Gigas Hosting go up and down completely randomly.
Pair Corralation between Atresmedia Corporacin and Gigas Hosting
Assuming the 90 days trading horizon Atresmedia Corporacin de is expected to generate 0.59 times more return on investment than Gigas Hosting. However, Atresmedia Corporacin de is 1.69 times less risky than Gigas Hosting. It trades about 0.07 of its potential returns per unit of risk. Gigas Hosting SA is currently generating about -0.03 per unit of risk. If you would invest 293.00 in Atresmedia Corporacin de on October 23, 2024 and sell it today you would earn a total of 143.00 from holding Atresmedia Corporacin de or generate 48.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atresmedia Corporacin de vs. Gigas Hosting SA
Performance |
| Timeline |
| Atresmedia Corporacin |
| Gigas Hosting SA |
Atresmedia Corporacin and Gigas Hosting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atresmedia Corporacin and Gigas Hosting
The main advantage of trading using opposite Atresmedia Corporacin and Gigas Hosting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia Corporacin position performs unexpectedly, Gigas Hosting 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 Gigas Hosting will offset losses from the drop in Gigas Hosting's long position.| Atresmedia Corporacin vs. Mapfre | Atresmedia Corporacin vs. ENCE Energa y | Atresmedia Corporacin vs. Acerinox | Atresmedia Corporacin vs. Enags SA |
| Gigas Hosting vs. Atresmedia Corporacin de | Gigas Hosting vs. Atrys Health SL | Gigas Hosting vs. Ebro Foods | Gigas Hosting vs. Home Capital Rentals |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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