Correlation Between Centaur Media and Autins Group
Can any of the company-specific risk be diversified away by investing in both Centaur Media and Autins Group 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 Autins Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and Autins Group plc, you can compare the effects of market volatilities on Centaur Media and Autins Group 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 Autins Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and Autins Group.
Diversification Opportunities for Centaur Media and Autins Group
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Centaur and Autins is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media and Autins Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autins Group plc 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 Autins Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autins Group plc has no effect on the direction of Centaur Media i.e., Centaur Media and Autins Group go up and down completely randomly.
Pair Corralation between Centaur Media and Autins Group
Assuming the 90 days trading horizon Centaur Media is expected to generate 0.34 times more return on investment than Autins Group. However, Centaur Media is 2.97 times less risky than Autins Group. It trades about -0.12 of its potential returns per unit of risk. Autins Group plc is currently generating about -0.28 per unit of risk. If you would invest 2,350 in Centaur Media on September 2, 2024 and sell it today you would lose (100.00) from holding Centaur Media or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centaur Media vs. Autins Group plc
Performance |
| Timeline |
| Centaur Media |
| Autins Group plc |
Centaur Media and Autins Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and Autins Group
The main advantage of trading using opposite Centaur Media and Autins Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media position performs unexpectedly, Autins Group 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 Autins Group will offset losses from the drop in Autins Group's long position.| Centaur Media vs. FC Investment Trust | Centaur Media vs. MoneysupermarketCom Group PLC | Centaur Media vs. Molson Coors Beverage | Centaur Media vs. CAP LEASE AVIATION |
| Autins Group vs. Auction Technology Group | Autins Group vs. Centaur Media | Autins Group vs. XLMedia PLC | Autins Group vs. Sunny Optical Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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