Correlation Between Beeks Trading and Atresmedia
Can any of the company-specific risk be diversified away by investing in both Beeks Trading and Atresmedia 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 Beeks Trading and Atresmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beeks Trading and Atresmedia, you can compare the effects of market volatilities on Beeks Trading and Atresmedia 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 Beeks Trading with a short position of Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beeks Trading and Atresmedia.
Diversification Opportunities for Beeks Trading and Atresmedia
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beeks and Atresmedia is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Beeks Trading and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia and Beeks Trading 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 Beeks Trading are associated (or correlated) with Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of Beeks Trading i.e., Beeks Trading and Atresmedia go up and down completely randomly.
Pair Corralation between Beeks Trading and Atresmedia
Assuming the 90 days trading horizon Beeks Trading is expected to under-perform the Atresmedia. In addition to that, Beeks Trading is 1.57 times more volatile than Atresmedia. It trades about -0.17 of its total potential returns per unit of risk. Atresmedia is currently generating about 0.01 per unit of volatility. If you would invest 453.00 in Atresmedia on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Atresmedia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beeks Trading vs. Atresmedia
Performance |
| Timeline |
| Beeks Trading |
| Atresmedia |
Beeks Trading and Atresmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beeks Trading and Atresmedia
The main advantage of trading using opposite Beeks Trading and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beeks Trading position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia's long position.| Beeks Trading vs. Charter Communications Cl | Beeks Trading vs. Zoom Video Communications | Beeks Trading vs. Creo Medical Group | Beeks Trading vs. Tata Steel Limited |
| Atresmedia vs. Sligro Food Group | Atresmedia vs. Ashtead Technology Holdings | Atresmedia vs. Allianz Technology Trust | Atresmedia vs. Celebrus Technologies plc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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