Correlation Between Beijing Media and Flight Centre
Can any of the company-specific risk be diversified away by investing in both Beijing Media and Flight Centre 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 Flight Centre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beijing Media and Flight Centre Travel, you can compare the effects of market volatilities on Beijing Media and Flight Centre 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 Flight Centre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Media and Flight Centre.
Diversification Opportunities for Beijing Media and Flight Centre
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beijing and Flight is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Media and Flight Centre Travel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flight Centre Travel 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 Flight Centre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flight Centre Travel has no effect on the direction of Beijing Media i.e., Beijing Media and Flight Centre go up and down completely randomly.
Pair Corralation between Beijing Media and Flight Centre
If you would invest 5.00 in Beijing Media on September 12, 2024 and sell it today you would lose (1.40) from holding Beijing Media or give up 28.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.26% |
| Values | Daily Returns |
Beijing Media vs. Flight Centre Travel
Performance |
| Timeline |
| Beijing Media |
| Flight Centre Travel |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Beijing Media and Flight Centre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Media and Flight Centre
The main advantage of trading using opposite Beijing Media and Flight Centre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Media position performs unexpectedly, Flight Centre 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 Flight Centre will offset losses from the drop in Flight Centre's long position.| Beijing Media vs. Superior Plus Corp | Beijing Media vs. SIVERS SEMICONDUCTORS AB | Beijing Media vs. NorAm Drilling AS | Beijing Media vs. Norsk Hydro ASA |
| Flight Centre vs. KENEDIX OFFICE INV | Flight Centre vs. British American Tobacco | Flight Centre vs. CITY OFFICE REIT | Flight Centre vs. MTI WIRELESS EDGE |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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