Correlation Between Centaur Media and Zegona Communications
Can any of the company-specific risk be diversified away by investing in both Centaur Media and Zegona Communications 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 Zegona Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and Zegona Communications Plc, you can compare the effects of market volatilities on Centaur Media and Zegona Communications 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 Zegona Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and Zegona Communications.
Diversification Opportunities for Centaur Media and Zegona Communications
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Centaur and Zegona is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media and Zegona Communications Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zegona Communications 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 Zegona Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zegona Communications Plc has no effect on the direction of Centaur Media i.e., Centaur Media and Zegona Communications go up and down completely randomly.
Pair Corralation between Centaur Media and Zegona Communications
Assuming the 90 days trading horizon Centaur Media is expected to under-perform the Zegona Communications. But the stock apears to be less risky and, when comparing its historical volatility, Centaur Media is 1.75 times less risky than Zegona Communications. The stock trades about -0.12 of its potential returns per unit of risk. The Zegona Communications Plc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 32,800 in Zegona Communications Plc on September 2, 2024 and sell it today you would earn a total of 2,000 from holding Zegona Communications Plc or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centaur Media vs. Zegona Communications Plc
Performance |
| Timeline |
| Centaur Media |
| Zegona Communications Plc |
Centaur Media and Zegona Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and Zegona Communications
The main advantage of trading using opposite Centaur Media and Zegona Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media position performs unexpectedly, Zegona Communications 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 Zegona Communications will offset losses from the drop in Zegona Communications' 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 |
| Zegona Communications vs. Samsung Electronics Co | Zegona Communications vs. Samsung Electronics Co | Zegona Communications vs. Hyundai Motor | Zegona Communications vs. Toyota Motor Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |