Correlation Between African Media and Growthpoint Properties
Can any of the company-specific risk be diversified away by investing in both African Media and Growthpoint Properties 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 African Media and Growthpoint Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between African Media Entertainment and Growthpoint Properties, you can compare the effects of market volatilities on African Media and Growthpoint Properties 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 African Media with a short position of Growthpoint Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of African Media and Growthpoint Properties.
Diversification Opportunities for African Media and Growthpoint Properties
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between African and Growthpoint is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding African Media Entertainment and Growthpoint Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growthpoint Properties and African Media 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 African Media Entertainment are associated (or correlated) with Growthpoint Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growthpoint Properties has no effect on the direction of African Media i.e., African Media and Growthpoint Properties go up and down completely randomly.
Pair Corralation between African Media and Growthpoint Properties
If you would invest 0.00 in Growthpoint Properties on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Growthpoint Properties or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
African Media Entertainment vs. Growthpoint Properties
Performance |
| Timeline |
| African Media Entert |
| Growthpoint Properties |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
African Media and Growthpoint Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with African Media and Growthpoint Properties
The main advantage of trading using opposite African Media and Growthpoint Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if African Media position performs unexpectedly, Growthpoint Properties 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 Growthpoint Properties will offset losses from the drop in Growthpoint Properties' long position.| African Media vs. Afine Investments | African Media vs. HomeChoice Investments | African Media vs. Safari Investments RSA | African Media vs. City Lodge Hotels |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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