Correlation Between Cheer Holding and Manchester United
Can any of the company-specific risk be diversified away by investing in both Cheer Holding and Manchester United 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 Cheer Holding and Manchester United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheer Holding and Manchester United, you can compare the effects of market volatilities on Cheer Holding and Manchester United 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 Cheer Holding with a short position of Manchester United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheer Holding and Manchester United.
Diversification Opportunities for Cheer Holding and Manchester United
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cheer and Manchester is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cheer Holding and Manchester United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manchester United and Cheer Holding 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 Cheer Holding are associated (or correlated) with Manchester United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manchester United has no effect on the direction of Cheer Holding i.e., Cheer Holding and Manchester United go up and down completely randomly.
Pair Corralation between Cheer Holding and Manchester United
Considering the 90-day investment horizon Cheer Holding is expected to under-perform the Manchester United. In addition to that, Cheer Holding is 1.64 times more volatile than Manchester United. It trades about -0.05 of its total potential returns per unit of risk. Manchester United is currently generating about 0.0 per unit of volatility. If you would invest 2,221 in Manchester United on August 27, 2024 and sell it today you would lose (471.00) from holding Manchester United or give up 21.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheer Holding vs. Manchester United
Performance |
| Timeline |
| Cheer Holding |
| Manchester United |
Cheer Holding and Manchester United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheer Holding and Manchester United
The main advantage of trading using opposite Cheer Holding and Manchester United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheer Holding position performs unexpectedly, Manchester United 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 Manchester United will offset losses from the drop in Manchester United's long position.| Cheer Holding vs. Inter Parfums | Cheer Holding vs. Albertsons Companies | Cheer Holding vs. Weyco Group | Cheer Holding vs. NH Foods Ltd |
| Manchester United vs. Endeavor Group Holdings | Manchester United vs. Live Nation Entertainment | Manchester United vs. Warner Music Group | Manchester United vs. Liberty 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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