Correlation Between Beijing MediaLimited and Wienerberger
Can any of the company-specific risk be diversified away by investing in both Beijing MediaLimited and Wienerberger 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 MediaLimited and Wienerberger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beijing Media and Wienerberger AG, you can compare the effects of market volatilities on Beijing MediaLimited and Wienerberger 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 MediaLimited with a short position of Wienerberger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing MediaLimited and Wienerberger.
Diversification Opportunities for Beijing MediaLimited and Wienerberger
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Wienerberger is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Media and Wienerberger AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wienerberger AG and Beijing MediaLimited 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 Wienerberger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wienerberger AG has no effect on the direction of Beijing MediaLimited i.e., Beijing MediaLimited and Wienerberger go up and down completely randomly.
Pair Corralation between Beijing MediaLimited and Wienerberger
Assuming the 90 days horizon Beijing Media is expected to under-perform the Wienerberger. In addition to that, Beijing MediaLimited is 2.05 times more volatile than Wienerberger AG. It trades about -0.18 of its total potential returns per unit of risk. Wienerberger AG is currently generating about -0.09 per unit of volatility. If you would invest 2,770 in Wienerberger AG on September 2, 2024 and sell it today you would lose (102.00) from holding Wienerberger AG or give up 3.68% 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. Wienerberger AG
Performance |
| Timeline |
| Beijing MediaLimited |
| Wienerberger AG |
Beijing MediaLimited and Wienerberger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing MediaLimited and Wienerberger
The main advantage of trading using opposite Beijing MediaLimited and Wienerberger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing MediaLimited position performs unexpectedly, Wienerberger 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 Wienerberger will offset losses from the drop in Wienerberger's long position.| Beijing MediaLimited vs. Haverty Furniture Companies | Beijing MediaLimited vs. MI Homes | Beijing MediaLimited vs. Addus HomeCare | Beijing MediaLimited vs. MHP Hotel AG |
| Wienerberger vs. REINET INVESTMENTS SCA | Wienerberger vs. Entravision Communications | Wienerberger vs. DIVERSIFIED ROYALTY | Wienerberger vs. WisdomTree Investments |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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