Correlation Between Argo Group and Everyman Media
Can any of the company-specific risk be diversified away by investing in both Argo Group and Everyman 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 Argo Group and Everyman Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Group Limited and Everyman Media Group, you can compare the effects of market volatilities on Argo Group and Everyman 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 Argo Group with a short position of Everyman Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Group and Everyman Media.
Diversification Opportunities for Argo Group and Everyman Media
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Argo and Everyman is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Argo Group Limited and Everyman Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everyman Media Group and Argo 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 Argo Group Limited are associated (or correlated) with Everyman Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everyman Media Group has no effect on the direction of Argo Group i.e., Argo Group and Everyman Media go up and down completely randomly.
Pair Corralation between Argo Group and Everyman Media
Assuming the 90 days trading horizon Argo Group Limited is expected to generate 0.88 times more return on investment than Everyman Media. However, Argo Group Limited is 1.14 times less risky than Everyman Media. It trades about 0.23 of its potential returns per unit of risk. Everyman Media Group is currently generating about -0.29 per unit of risk. If you would invest 400.00 in Argo Group Limited on October 24, 2024 and sell it today you would earn a total of 50.00 from holding Argo Group Limited or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Group Limited vs. Everyman Media Group
Performance |
| Timeline |
| Argo Group Limited |
| Everyman Media Group |
Argo Group and Everyman Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Group and Everyman Media
The main advantage of trading using opposite Argo Group and Everyman Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Group position performs unexpectedly, Everyman 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 Everyman Media will offset losses from the drop in Everyman Media's long position.| Argo Group vs. Eastman Chemical Co | Argo Group vs. Edinburgh Investment Trust | Argo Group vs. Zegona Communications Plc | Argo Group vs. Temple Bar Investment |
| Everyman Media vs. Air Products Chemicals | Everyman Media vs. JD Sports Fashion | Everyman Media vs. Datagroup SE | Everyman Media vs. Jupiter Fund Management |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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