Correlation Between CNVISION MEDIA and SYSTEMAIR
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA and SYSTEMAIR 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 CNVISION MEDIA and SYSTEMAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and SYSTEMAIR AB, you can compare the effects of market volatilities on CNVISION MEDIA and SYSTEMAIR 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 CNVISION MEDIA with a short position of SYSTEMAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and SYSTEMAIR.
Diversification Opportunities for CNVISION MEDIA and SYSTEMAIR
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between CNVISION and SYSTEMAIR is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA and SYSTEMAIR AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSTEMAIR AB and CNVISION 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 CNVISION MEDIA are associated (or correlated) with SYSTEMAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSTEMAIR AB has no effect on the direction of CNVISION MEDIA i.e., CNVISION MEDIA and SYSTEMAIR go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and SYSTEMAIR
Assuming the 90 days trading horizon CNVISION MEDIA is expected to generate 2.33 times less return on investment than SYSTEMAIR. But when comparing it to its historical volatility, CNVISION MEDIA is 1.02 times less risky than SYSTEMAIR. It trades about 0.03 of its potential returns per unit of risk. SYSTEMAIR AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 557.00 in SYSTEMAIR AB on September 14, 2024 and sell it today you would earn a total of 248.00 from holding SYSTEMAIR AB or generate 44.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNVISION MEDIA vs. SYSTEMAIR AB
Performance |
| Timeline |
| CNVISION MEDIA |
| SYSTEMAIR AB |
CNVISION MEDIA and SYSTEMAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNVISION MEDIA and SYSTEMAIR
The main advantage of trading using opposite CNVISION MEDIA and SYSTEMAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA position performs unexpectedly, SYSTEMAIR 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 SYSTEMAIR will offset losses from the drop in SYSTEMAIR's long position.| CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |