Correlation Between Creative Media and Wilhelmina
Can any of the company-specific risk be diversified away by investing in both Creative Media and Wilhelmina 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 Creative Media and Wilhelmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creative Media Community and Wilhelmina, you can compare the effects of market volatilities on Creative Media and Wilhelmina 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 Creative Media with a short position of Wilhelmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creative Media and Wilhelmina.
Diversification Opportunities for Creative Media and Wilhelmina
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Creative and Wilhelmina is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Creative Media Community and Wilhelmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilhelmina and Creative 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 Creative Media Community are associated (or correlated) with Wilhelmina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilhelmina has no effect on the direction of Creative Media i.e., Creative Media and Wilhelmina go up and down completely randomly.
Pair Corralation between Creative Media and Wilhelmina
Given the investment horizon of 90 days Creative Media Community is expected to under-perform the Wilhelmina. In addition to that, Creative Media is 2.73 times more volatile than Wilhelmina. It trades about -0.39 of its total potential returns per unit of risk. Wilhelmina is currently generating about 0.31 per unit of volatility. If you would invest 332.00 in Wilhelmina on August 29, 2024 and sell it today you would earn a total of 67.00 from holding Wilhelmina or generate 20.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creative Media Community vs. Wilhelmina
Performance |
| Timeline |
| Creative Media Community |
| Wilhelmina |
Creative Media and Wilhelmina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creative Media and Wilhelmina
The main advantage of trading using opposite Creative Media and Wilhelmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creative Media position performs unexpectedly, Wilhelmina 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 Wilhelmina will offset losses from the drop in Wilhelmina's long position.| Creative Media vs. Cousins Properties Incorporated | Creative Media vs. Highwoods Properties | Creative Media vs. Douglas Emmett | Creative Media vs. Equity Commonwealth |
| Wilhelmina vs. Performant Financial | Wilhelmina vs. Network 1 Technologies | Wilhelmina vs. Rentokil Initial PLC | Wilhelmina vs. Mader Group Limited |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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