Correlation Between Cox ABG and Media Investment
Can any of the company-specific risk be diversified away by investing in both Cox ABG and Media Investment 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 Cox ABG and Media Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cox ABG Group and Media Investment Optimization, you can compare the effects of market volatilities on Cox ABG and Media Investment 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 Cox ABG with a short position of Media Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cox ABG and Media Investment.
Diversification Opportunities for Cox ABG and Media Investment
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cox and Media is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cox ABG Group and Media Investment Optimization in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Investment Opt and Cox ABG 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 Cox ABG Group are associated (or correlated) with Media Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Investment Opt has no effect on the direction of Cox ABG i.e., Cox ABG and Media Investment go up and down completely randomly.
Pair Corralation between Cox ABG and Media Investment
Assuming the 90 days trading horizon Cox ABG Group is expected to generate 1.08 times more return on investment than Media Investment. However, Cox ABG is 1.08 times more volatile than Media Investment Optimization. It trades about 0.25 of its potential returns per unit of risk. Media Investment Optimization is currently generating about -0.21 per unit of risk. If you would invest 950.00 in Cox ABG Group on September 1, 2024 and sell it today you would earn a total of 62.00 from holding Cox ABG Group or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
Cox ABG Group vs. Media Investment Optimization
Performance |
| Timeline |
| Cox ABG Group |
| Media Investment Opt |
Cox ABG and Media Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cox ABG and Media Investment
The main advantage of trading using opposite Cox ABG and Media Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cox ABG position performs unexpectedly, Media Investment 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 Investment will offset losses from the drop in Media Investment's long position.| Cox ABG vs. Industria de Diseno | Cox ABG vs. Iberdrola SA | Cox ABG vs. Banco Santander | Cox ABG vs. Caixabank SA |
| Media Investment vs. Atresmedia Corporacin de | Media Investment vs. Squirrel Media SA | Media Investment vs. Cox ABG Group | Media Investment vs. Tier1 Technology SA |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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