Correlation Between AA Mission and International Media
Can any of the company-specific risk be diversified away by investing in both AA Mission and International 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 AA Mission and International Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AA Mission Acquisition and International Media Acquisition, you can compare the effects of market volatilities on AA Mission and International 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 AA Mission with a short position of International Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of AA Mission and International Media.
Diversification Opportunities for AA Mission and International Media
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AAM and International is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding AA Mission Acquisition and International Media Acquisitio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Media and AA Mission 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 AA Mission Acquisition are associated (or correlated) with International Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Media has no effect on the direction of AA Mission i.e., AA Mission and International Media go up and down completely randomly.
Pair Corralation between AA Mission and International Media
If you would invest 1,005 in AA Mission Acquisition on September 19, 2024 and sell it today you would earn a total of 4.00 from holding AA Mission Acquisition or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
AA Mission Acquisition vs. International Media Acquisitio
Performance |
| Timeline |
| AA Mission Acquisition |
| International Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AA Mission and International Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AA Mission and International Media
The main advantage of trading using opposite AA Mission and International Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AA Mission position performs unexpectedly, International 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 International Media will offset losses from the drop in International Media's long position.| AA Mission vs. Distoken Acquisition | AA Mission vs. dMY Squared Technology | AA Mission vs. YHN Acquisition I | AA Mission vs. YHN Acquisition I |
| International Media vs. Ark Restaurants Corp | International Media vs. ServiceNow | International Media vs. Dine Brands Global | International Media vs. Dalata Hotel Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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