Correlation Between Cboe UK and ITV PLC
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By analyzing existing cross correlation between Cboe UK Consumer and ITV PLC, you can compare the effects of market volatilities on Cboe UK and ITV 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 Cboe UK with a short position of ITV PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and ITV PLC.
Diversification Opportunities for Cboe UK and ITV PLC
Pay attention - limited upside
The 3 months correlation between Cboe and ITV is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and ITV PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITV PLC and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with ITV PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITV PLC has no effect on the direction of Cboe UK i.e., Cboe UK and ITV PLC go up and down completely randomly.
Pair Corralation between Cboe UK and ITV PLC
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.47 times more return on investment than ITV PLC. However, Cboe UK Consumer is 2.11 times less risky than ITV PLC. It trades about 0.1 of its potential returns per unit of risk. ITV PLC is currently generating about 0.03 per unit of risk. If you would invest 2,456,314 in Cboe UK Consumer on August 29, 2024 and sell it today you would earn a total of 804,933 from holding Cboe UK Consumer or generate 32.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.06% |
| Values | Daily Returns |
Cboe UK Consumer vs. ITV PLC
Performance |
| Timeline |
Cboe UK and ITV PLC Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
ITV PLC
Pair trading matchups for ITV PLC
Pair Trading with Cboe UK and ITV PLC
The main advantage of trading using opposite Cboe UK and ITV PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, ITV 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 ITV PLC will offset losses from the drop in ITV PLC's long position.| Cboe UK vs. Liberty Media Corp | Cboe UK vs. XLMedia PLC | Cboe UK vs. Scandinavian Tobacco Group | Cboe UK vs. Catena Media PLC |
| ITV PLC vs. Primary Health Properties | ITV PLC vs. Teradata Corp | ITV PLC vs. Charter Communications Cl | ITV PLC vs. Alliance Data Systems |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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