Correlation Between CNVISION MEDIA and NEWELL RUBBERMAID
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA and NEWELL RUBBERMAID 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 NEWELL RUBBERMAID into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and NEWELL RUBBERMAID , you can compare the effects of market volatilities on CNVISION MEDIA and NEWELL RUBBERMAID 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 NEWELL RUBBERMAID. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and NEWELL RUBBERMAID.
Diversification Opportunities for CNVISION MEDIA and NEWELL RUBBERMAID
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CNVISION and NEWELL is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA and NEWELL RUBBERMAID in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWELL RUBBERMAID 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 NEWELL RUBBERMAID. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWELL RUBBERMAID has no effect on the direction of CNVISION MEDIA i.e., CNVISION MEDIA and NEWELL RUBBERMAID go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and NEWELL RUBBERMAID
Assuming the 90 days trading horizon CNVISION MEDIA is expected to generate 2.18 times more return on investment than NEWELL RUBBERMAID. However, CNVISION MEDIA is 2.18 times more volatile than NEWELL RUBBERMAID . It trades about 0.16 of its potential returns per unit of risk. NEWELL RUBBERMAID is currently generating about 0.09 per unit of risk. If you would invest 5.80 in CNVISION MEDIA on October 24, 2024 and sell it today you would earn a total of 0.35 from holding CNVISION MEDIA or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNVISION MEDIA vs. NEWELL RUBBERMAID
Performance |
| Timeline |
| CNVISION MEDIA |
| NEWELL RUBBERMAID |
CNVISION MEDIA and NEWELL RUBBERMAID Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNVISION MEDIA and NEWELL RUBBERMAID
The main advantage of trading using opposite CNVISION MEDIA and NEWELL RUBBERMAID positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA position performs unexpectedly, NEWELL RUBBERMAID 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 NEWELL RUBBERMAID will offset losses from the drop in NEWELL RUBBERMAID's long position.| CNVISION MEDIA vs. CAREER EDUCATION | CNVISION MEDIA vs. G8 EDUCATION | CNVISION MEDIA vs. TAL Education Group | CNVISION MEDIA vs. STEEL DYNAMICS |
| NEWELL RUBBERMAID vs. SQUIRREL MEDIA SA | NEWELL RUBBERMAID vs. Mitsubishi Gas Chemical | NEWELL RUBBERMAID vs. X FAB Silicon Foundries | NEWELL RUBBERMAID vs. CNVISION MEDIA |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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