Correlation Between E Media and Tsogo Sun
Can any of the company-specific risk be diversified away by investing in both E Media and Tsogo Sun 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 E Media and Tsogo Sun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Media Holdings and Tsogo Sun, you can compare the effects of market volatilities on E Media and Tsogo Sun 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 E Media with a short position of Tsogo Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Media and Tsogo Sun.
Diversification Opportunities for E Media and Tsogo Sun
Pay attention - limited upside
The 3 months correlation between EMH and Tsogo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E Media Holdings and Tsogo Sun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsogo Sun and E 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 E Media Holdings are associated (or correlated) with Tsogo Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsogo Sun has no effect on the direction of E Media i.e., E Media and Tsogo Sun go up and down completely randomly.
Pair Corralation between E Media and Tsogo Sun
If you would invest 36,800 in E Media Holdings on September 12, 2024 and sell it today you would lose (400.00) from holding E Media Holdings or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
E Media Holdings vs. Tsogo Sun
Performance |
| Timeline |
| E Media Holdings |
| Tsogo Sun |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
E Media and Tsogo Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Media and Tsogo Sun
The main advantage of trading using opposite E Media and Tsogo Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Media position performs unexpectedly, Tsogo Sun 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 Tsogo Sun will offset losses from the drop in Tsogo Sun's long position.| E Media vs. eMedia Holdings Limited | E Media vs. Sasol Ltd Bee | E Media vs. Centaur Bci Balanced | E Media vs. Sabvest Capital |
| Tsogo Sun vs. Advtech | Tsogo Sun vs. Standard Bank Group | Tsogo Sun vs. Safari Investments RSA | Tsogo Sun vs. MC Mining |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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