Correlation Between Carnegie Clean and Media
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean and Media 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 Carnegie Clean and Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Clean Energy and Media and Games, you can compare the effects of market volatilities on Carnegie Clean and Media 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 Carnegie Clean with a short position of Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and Media.
Diversification Opportunities for Carnegie Clean and Media
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Carnegie and Media is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games and Carnegie Clean 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 Carnegie Clean Energy are associated (or correlated) with Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and Media go up and down completely randomly.
Pair Corralation between Carnegie Clean and Media
Assuming the 90 days trading horizon Carnegie Clean is expected to generate 1.83 times less return on investment than Media. In addition to that, Carnegie Clean is 1.89 times more volatile than Media and Games. It trades about 0.01 of its total potential returns per unit of risk. Media and Games is currently generating about 0.04 per unit of volatility. If you would invest 167.00 in Media and Games on October 14, 2024 and sell it today you would earn a total of 107.00 from holding Media and Games or generate 64.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. Media and Games
Performance |
| Timeline |
| Carnegie Clean Energy |
| Media and Games |
Carnegie Clean and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and Media
The main advantage of trading using opposite Carnegie Clean and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean position performs unexpectedly, Media 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 Media will offset losses from the drop in Media's long position.| Carnegie Clean vs. KIMBALL ELECTRONICS | Carnegie Clean vs. Direct Line Insurance | Carnegie Clean vs. STMICROELECTRONICS | Carnegie Clean vs. The Hanover Insurance |
| Media vs. CLEAN ENERGY FUELS | Media vs. PLAY2CHILL SA ZY | Media vs. PLAYTECH | Media vs. Carnegie Clean Energy |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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