Correlation Between AiMedia Technologies and Nine Entertainment
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Nine Entertainment 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 AiMedia Technologies and Nine Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Nine Entertainment Co, you can compare the effects of market volatilities on AiMedia Technologies and Nine Entertainment 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 AiMedia Technologies with a short position of Nine Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Nine Entertainment.
Diversification Opportunities for AiMedia Technologies and Nine Entertainment
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AiMedia and Nine is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Nine Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Entertainment and AiMedia Technologies 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 AiMedia Technologies are associated (or correlated) with Nine Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Entertainment has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Nine Entertainment go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Nine Entertainment
Assuming the 90 days trading horizon AiMedia Technologies is expected to under-perform the Nine Entertainment. In addition to that, AiMedia Technologies is 3.39 times more volatile than Nine Entertainment Co. It trades about -0.28 of its total potential returns per unit of risk. Nine Entertainment Co is currently generating about -0.02 per unit of volatility. If you would invest 131.00 in Nine Entertainment Co on November 9, 2024 and sell it today you would lose (1.00) from holding Nine Entertainment Co or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. Nine Entertainment Co
Performance |
| Timeline |
| AiMedia Technologies |
| Nine Entertainment |
AiMedia Technologies and Nine Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Nine Entertainment
The main advantage of trading using opposite AiMedia Technologies and Nine Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Nine Entertainment 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 Nine Entertainment will offset losses from the drop in Nine Entertainment's long position.| AiMedia Technologies vs. Event Hospitality and | AiMedia Technologies vs. Data3 | AiMedia Technologies vs. Apiam Animal Health | AiMedia Technologies vs. Flagship Investments |
| Nine Entertainment vs. Westpac Banking | Nine Entertainment vs. National Australia Bank | Nine Entertainment vs. National Australia Bank | Nine Entertainment vs. Commonwealth Bank |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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