Correlation Between Netmedia Group and Metalliance
Can any of the company-specific risk be diversified away by investing in both Netmedia Group and Metalliance 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 Netmedia Group and Metalliance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netmedia Group SA and Metalliance SA, you can compare the effects of market volatilities on Netmedia Group and Metalliance 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 Netmedia Group with a short position of Metalliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netmedia Group and Metalliance.
Diversification Opportunities for Netmedia Group and Metalliance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Netmedia and Metalliance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Netmedia Group SA and Metalliance SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metalliance SA and Netmedia Group 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 Netmedia Group SA are associated (or correlated) with Metalliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metalliance SA has no effect on the direction of Netmedia Group i.e., Netmedia Group and Metalliance go up and down completely randomly.
Pair Corralation between Netmedia Group and Metalliance
Assuming the 90 days trading horizon Netmedia Group SA is expected to under-perform the Metalliance. In addition to that, Netmedia Group is 2.0 times more volatile than Metalliance SA. It trades about -0.05 of its total potential returns per unit of risk. Metalliance SA is currently generating about -0.01 per unit of volatility. If you would invest 1,140 in Metalliance SA on November 1, 2024 and sell it today you would lose (290.00) from holding Metalliance SA or give up 25.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.55% |
| Values | Daily Returns |
Netmedia Group SA vs. Metalliance SA
Performance |
| Timeline |
| Netmedia Group SA |
| Metalliance SA |
Netmedia Group and Metalliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netmedia Group and Metalliance
The main advantage of trading using opposite Netmedia Group and Metalliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netmedia Group position performs unexpectedly, Metalliance 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 Metalliance will offset losses from the drop in Metalliance's long position.| Netmedia Group vs. FNP Technologies SA | Netmedia Group vs. Linedata Services SA | Netmedia Group vs. Jacquet Metal Service | Netmedia Group vs. Hitechpros |
| Metalliance vs. Gaztransport Technigaz SAS | Metalliance vs. Odyssee Technologies SA | Metalliance vs. Veolia Environnement VE | Metalliance vs. CMG Cleantech SA |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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