Correlation Between Boxer Retail and EMedia Holdings
Can any of the company-specific risk be diversified away by investing in both Boxer Retail and EMedia Holdings 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 Boxer Retail and EMedia Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boxer Retail and eMedia Holdings Limited, you can compare the effects of market volatilities on Boxer Retail and EMedia Holdings 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 Boxer Retail with a short position of EMedia Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boxer Retail and EMedia Holdings.
Diversification Opportunities for Boxer Retail and EMedia Holdings
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boxer and EMedia is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Boxer Retail and eMedia Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eMedia Holdings and Boxer Retail 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 Boxer Retail are associated (or correlated) with EMedia Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eMedia Holdings has no effect on the direction of Boxer Retail i.e., Boxer Retail and EMedia Holdings go up and down completely randomly.
Pair Corralation between Boxer Retail and EMedia Holdings
Assuming the 90 days trading horizon Boxer Retail is expected to generate 3.32 times less return on investment than EMedia Holdings. But when comparing it to its historical volatility, Boxer Retail is 14.21 times less risky than EMedia Holdings. It trades about 0.17 of its potential returns per unit of risk. eMedia Holdings Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 37,838 in eMedia Holdings Limited on October 27, 2024 and sell it today you would lose (4,838) from holding eMedia Holdings Limited or give up 12.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.15% |
| Values | Daily Returns |
Boxer Retail vs. eMedia Holdings Limited
Performance |
| Timeline |
| Boxer Retail |
| eMedia Holdings |
Boxer Retail and EMedia Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boxer Retail and EMedia Holdings
The main advantage of trading using opposite Boxer Retail and EMedia Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boxer Retail position performs unexpectedly, EMedia Holdings 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 EMedia Holdings will offset losses from the drop in EMedia Holdings' long position.| Boxer Retail vs. Brimstone Investment | Boxer Retail vs. MC Mining | Boxer Retail vs. Nedbank Group | Boxer Retail vs. Reinet Investments SCA |
| EMedia Holdings vs. Reinet Investments SCA | EMedia Holdings vs. Nedbank Group | EMedia Holdings vs. Ascendis Health | EMedia Holdings vs. E Media Holdings |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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