Correlation Between Doxa AB and Media
Can any of the company-specific risk be diversified away by investing in both Doxa AB 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 Doxa AB and Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doxa AB and Media and Games, you can compare the effects of market volatilities on Doxa AB 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 Doxa AB with a short position of Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doxa AB and Media.
Diversification Opportunities for Doxa AB and Media
Very good diversification
The 3 months correlation between Doxa and Media is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Doxa AB 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 Doxa AB 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 Doxa AB 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 Doxa AB i.e., Doxa AB and Media go up and down completely randomly.
Pair Corralation between Doxa AB and Media
Assuming the 90 days trading horizon Doxa AB is expected to under-perform the Media. But the stock apears to be less risky and, when comparing its historical volatility, Doxa AB is 2.28 times less risky than Media. The stock trades about -0.06 of its potential returns per unit of risk. The Media and Games is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,520 in Media and Games on August 31, 2024 and sell it today you would earn a total of 90.00 from holding Media and Games or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doxa AB vs. Media and Games
Performance |
| Timeline |
| Doxa AB |
| Media and Games |
Doxa AB and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doxa AB and Media
The main advantage of trading using opposite Doxa AB and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doxa AB 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.| Doxa AB vs. Mantex AB | Doxa AB vs. Genovis AB | Doxa AB vs. Vestum AB | Doxa AB vs. Karolinska Development AB |
| Media vs. MilDef Group AB | Media vs. Enad Global 7 | Media vs. Fractal Gaming Group | Media vs. KABE Group AB |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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