Correlation Between CNVISION MEDIA and H2O Retailing
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA and H2O Retailing 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 H2O Retailing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and H2O Retailing, you can compare the effects of market volatilities on CNVISION MEDIA and H2O Retailing 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 H2O Retailing. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and H2O Retailing.
Diversification Opportunities for CNVISION MEDIA and H2O Retailing
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CNVISION and H2O is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA and H2O Retailing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H2O Retailing 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 H2O Retailing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H2O Retailing has no effect on the direction of CNVISION MEDIA i.e., CNVISION MEDIA and H2O Retailing go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and H2O Retailing
Assuming the 90 days trading horizon CNVISION MEDIA is expected to generate 1.92 times less return on investment than H2O Retailing. In addition to that, CNVISION MEDIA is 1.08 times more volatile than H2O Retailing. It trades about 0.04 of its total potential returns per unit of risk. H2O Retailing is currently generating about 0.08 per unit of volatility. If you would invest 671.00 in H2O Retailing on October 23, 2024 and sell it today you would earn a total of 699.00 from holding H2O Retailing or generate 104.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNVISION MEDIA vs. H2O Retailing
Performance |
| Timeline |
| CNVISION MEDIA |
| H2O Retailing |
CNVISION MEDIA and H2O Retailing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNVISION MEDIA and H2O Retailing
The main advantage of trading using opposite CNVISION MEDIA and H2O Retailing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA position performs unexpectedly, H2O Retailing 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 H2O Retailing will offset losses from the drop in H2O Retailing's long position.| CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc |
| H2O Retailing vs. Aeon Co | H2O Retailing vs. Dillards | H2O Retailing vs. Macys Inc | H2O Retailing vs. RYOHIN UNSPADR1 |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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