Correlation Between Centaur Media and Sparebank
Can any of the company-specific risk be diversified away by investing in both Centaur Media and Sparebank 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 Centaur Media and Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and Sparebank 1 SR, you can compare the effects of market volatilities on Centaur Media and Sparebank 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 Centaur Media with a short position of Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and Sparebank.
Diversification Opportunities for Centaur Media and Sparebank
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Centaur and Sparebank is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media and Sparebank 1 SR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparebank 1 SR and Centaur 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 Centaur Media are associated (or correlated) with Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparebank 1 SR has no effect on the direction of Centaur Media i.e., Centaur Media and Sparebank go up and down completely randomly.
Pair Corralation between Centaur Media and Sparebank
Assuming the 90 days trading horizon Centaur Media is expected to generate 0.58 times more return on investment than Sparebank. However, Centaur Media is 1.72 times less risky than Sparebank. It trades about 0.24 of its potential returns per unit of risk. Sparebank 1 SR is currently generating about 0.0 per unit of risk. If you would invest 2,300 in Centaur Media on October 16, 2024 and sell it today you would earn a total of 50.00 from holding Centaur Media or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Centaur Media vs. Sparebank 1 SR
Performance |
| Timeline |
| Centaur Media |
| Sparebank 1 SR |
Centaur Media and Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and Sparebank
The main advantage of trading using opposite Centaur Media and Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media position performs unexpectedly, Sparebank 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 Sparebank will offset losses from the drop in Sparebank's long position.| Centaur Media vs. JD Sports Fashion | Centaur Media vs. Naked Wines plc | Centaur Media vs. Virgin Wines UK | Centaur Media vs. CAP LEASE AVIATION |
| Sparebank vs. Thor Mining PLC | Sparebank vs. AcadeMedia AB | Sparebank vs. Centaur Media | Sparebank vs. First Class Metals |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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