Correlation Between Media 6 and Plastiques
Can any of the company-specific risk be diversified away by investing in both Media 6 and Plastiques 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 Media 6 and Plastiques into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Media 6 SA and Plastiques du Val, you can compare the effects of market volatilities on Media 6 and Plastiques 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 Media 6 with a short position of Plastiques. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media 6 and Plastiques.
Diversification Opportunities for Media 6 and Plastiques
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Media and Plastiques is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Media 6 SA and Plastiques du Val in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plastiques du Val and Media 6 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 Media 6 SA are associated (or correlated) with Plastiques. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plastiques du Val has no effect on the direction of Media 6 i.e., Media 6 and Plastiques go up and down completely randomly.
Pair Corralation between Media 6 and Plastiques
Assuming the 90 days trading horizon Media 6 SA is expected to generate 1.57 times more return on investment than Plastiques. However, Media 6 is 1.57 times more volatile than Plastiques du Val. It trades about 0.02 of its potential returns per unit of risk. Plastiques du Val is currently generating about -0.24 per unit of risk. If you would invest 1,220 in Media 6 SA on September 3, 2024 and sell it today you would lose (10.00) from holding Media 6 SA or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Media 6 SA vs. Plastiques du Val
Performance |
| Timeline |
| Media 6 SA |
| Plastiques du Val |
Media 6 and Plastiques Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media 6 and Plastiques
The main advantage of trading using opposite Media 6 and Plastiques positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media 6 position performs unexpectedly, Plastiques 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 Plastiques will offset losses from the drop in Plastiques' long position.| Media 6 vs. Lacroix Group SA | Media 6 vs. Fiducial Office Solutions | Media 6 vs. ACTEOS SA | Media 6 vs. Passat Socit Anonyme |
| Plastiques vs. Groupe Guillin SA | Plastiques vs. Groupe Partouche SA | Plastiques vs. Passat Socit Anonyme | Plastiques vs. Akwel 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |