Correlation Between Birkenstock Holding and NATION MEDIA
Can any of the company-specific risk be diversified away by investing in both Birkenstock Holding and NATION 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 Birkenstock Holding and NATION MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Birkenstock Holding plc and NATION MEDIA GROUP, you can compare the effects of market volatilities on Birkenstock Holding and NATION 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 Birkenstock Holding with a short position of NATION MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Birkenstock Holding and NATION MEDIA.
Diversification Opportunities for Birkenstock Holding and NATION MEDIA
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Birkenstock and NATION is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Birkenstock Holding plc and NATION MEDIA GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATION MEDIA GROUP and Birkenstock Holding 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 Birkenstock Holding plc are associated (or correlated) with NATION MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATION MEDIA GROUP has no effect on the direction of Birkenstock Holding i.e., Birkenstock Holding and NATION MEDIA go up and down completely randomly.
Pair Corralation between Birkenstock Holding and NATION MEDIA
Given the investment horizon of 90 days Birkenstock Holding is expected to generate 3.19 times less return on investment than NATION MEDIA. But when comparing it to its historical volatility, Birkenstock Holding plc is 1.09 times less risky than NATION MEDIA. It trades about 0.01 of its potential returns per unit of risk. NATION MEDIA GROUP is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 27,000 in NATION MEDIA GROUP on December 11, 2024 and sell it today you would earn a total of 3,000 from holding NATION MEDIA GROUP or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 72.9% |
| Values | Daily Returns |
Birkenstock Holding plc vs. NATION MEDIA GROUP
Performance |
| Timeline |
| Birkenstock Holding plc |
| NATION MEDIA GROUP |
Birkenstock Holding and NATION MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Birkenstock Holding and NATION MEDIA
The main advantage of trading using opposite Birkenstock Holding and NATION MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Birkenstock Holding position performs unexpectedly, NATION 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 NATION MEDIA will offset losses from the drop in NATION MEDIA's long position.| Birkenstock Holding vs. Take Two Interactive Software | ||
| Birkenstock Holding vs. Old Republic International | ||
| Birkenstock Holding vs. Fidus Investment Corp | ||
| Birkenstock Holding vs. Universal Music Group |
| NATION MEDIA vs. EAST AFRICAN BREWERIES | ||
| NATION MEDIA vs. TANZANIA BREWERIES LTD | ||
| NATION MEDIA vs. NATIONAL INVESTMENT PANY | ||
| NATION MEDIA vs. SWISSPORT TANZANIA LTD |
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.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |