Correlation Between Argo Group and One Media
Can any of the company-specific risk be diversified away by investing in both Argo Group and One 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 One 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 One Media iP, you can compare the effects of market volatilities on Argo Group and One 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 One Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Group and One Media.
Diversification Opportunities for Argo Group and One Media
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Argo and One is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Argo Group Limited and One Media iP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Media iP 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 One Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Media iP has no effect on the direction of Argo Group i.e., Argo Group and One Media go up and down completely randomly.
Pair Corralation between Argo Group and One Media
Assuming the 90 days trading horizon Argo Group is expected to generate 33.06 times less return on investment than One Media. But when comparing it to its historical volatility, Argo Group Limited is 1.72 times less risky than One Media. It trades about 0.01 of its potential returns per unit of risk. One Media iP is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 375.00 in One Media iP on August 31, 2024 and sell it today you would earn a total of 50.00 from holding One Media iP or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Group Limited vs. One Media iP
Performance |
| Timeline |
| Argo Group Limited |
| One Media iP |
Argo Group and One Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Group and One Media
The main advantage of trading using opposite Argo Group and One Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Group position performs unexpectedly, One 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 One Media will offset losses from the drop in One Media's long position.| Argo Group vs. Charter Communications Cl | Argo Group vs. Sparebank 1 SR | Argo Group vs. MTI Wireless Edge | Argo Group vs. Bank of Ireland |
| One Media vs. Toyota Motor Corp | One Media vs. SoftBank Group Corp | One Media vs. OTP Bank Nyrt | One Media vs. Las Vegas Sands |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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