Correlation Between Beijing Media and PageGroup Plc
Can any of the company-specific risk be diversified away by investing in both Beijing Media and PageGroup Plc 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 Beijing Media and PageGroup Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beijing Media and PageGroup plc, you can compare the effects of market volatilities on Beijing Media and PageGroup Plc 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 Beijing Media with a short position of PageGroup Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Media and PageGroup Plc.
Diversification Opportunities for Beijing Media and PageGroup Plc
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and PageGroup is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Media and PageGroup plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PageGroup plc and Beijing 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 Beijing Media are associated (or correlated) with PageGroup Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PageGroup plc has no effect on the direction of Beijing Media i.e., Beijing Media and PageGroup Plc go up and down completely randomly.
Pair Corralation between Beijing Media and PageGroup Plc
Assuming the 90 days horizon Beijing Media is expected to generate 2.56 times more return on investment than PageGroup Plc. However, Beijing Media is 2.56 times more volatile than PageGroup plc. It trades about 0.0 of its potential returns per unit of risk. PageGroup plc is currently generating about -0.02 per unit of risk. If you would invest 3.35 in Beijing Media on September 4, 2024 and sell it today you would lose (0.15) from holding Beijing Media or give up 4.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Media vs. PageGroup plc
Performance |
| Timeline |
| Beijing Media |
| PageGroup plc |
Beijing Media and PageGroup Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Media and PageGroup Plc
The main advantage of trading using opposite Beijing Media and PageGroup Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Media position performs unexpectedly, PageGroup Plc 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 PageGroup Plc will offset losses from the drop in PageGroup Plc's long position.| Beijing Media vs. Superior Plus Corp | Beijing Media vs. NMI Holdings | Beijing Media vs. Origin Agritech | Beijing Media vs. SIVERS SEMICONDUCTORS AB |
| PageGroup Plc vs. ScanSource | PageGroup Plc vs. Beijing Media | PageGroup Plc vs. Xinhua Winshare Publishing | PageGroup Plc vs. XLMedia 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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