Correlation Between Atresmedia Corporacin and Squirrel Media
Can any of the company-specific risk be diversified away by investing in both Atresmedia Corporacin and Squirrel 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 Atresmedia Corporacin and Squirrel Media 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 Squirrel Media SA, you can compare the effects of market volatilities on Atresmedia Corporacin and Squirrel 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 Atresmedia Corporacin with a short position of Squirrel Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia Corporacin and Squirrel Media.
Diversification Opportunities for Atresmedia Corporacin and Squirrel Media
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atresmedia and Squirrel is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia Corporacin de and Squirrel Media SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Squirrel Media 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 Squirrel Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Squirrel Media SA has no effect on the direction of Atresmedia Corporacin i.e., Atresmedia Corporacin and Squirrel Media go up and down completely randomly.
Pair Corralation between Atresmedia Corporacin and Squirrel Media
Assuming the 90 days trading horizon Atresmedia Corporacin de is expected to generate 0.41 times more return on investment than Squirrel Media. However, Atresmedia Corporacin de is 2.45 times less risky than Squirrel Media. It trades about 0.1 of its potential returns per unit of risk. Squirrel Media SA is currently generating about -0.03 per unit of risk. If you would invest 273.00 in Atresmedia Corporacin de on September 2, 2024 and sell it today you would earn a total of 182.00 from holding Atresmedia Corporacin de or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atresmedia Corporacin de vs. Squirrel Media SA
Performance |
| Timeline |
| Atresmedia Corporacin |
| Squirrel Media SA |
Atresmedia Corporacin and Squirrel Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atresmedia Corporacin and Squirrel Media
The main advantage of trading using opposite Atresmedia Corporacin and Squirrel Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia Corporacin position performs unexpectedly, Squirrel 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 Squirrel Media will offset losses from the drop in Squirrel Media's long position.| Atresmedia Corporacin vs. ACS Actividades de | Atresmedia Corporacin vs. Ferrovial | Atresmedia Corporacin vs. Melia Hotels | Atresmedia Corporacin vs. Lyxor UCITS Ibex35 |
| Squirrel Media vs. Borges Agricultural Industrial | Squirrel Media vs. Neinor Homes SLU | Squirrel Media vs. Parlem Telecom Companyia | Squirrel Media vs. Inhome Prime Properties |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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