Correlation Between EMedia Holdings and British Amer
Can any of the company-specific risk be diversified away by investing in both EMedia Holdings and British Amer 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 EMedia Holdings and British Amer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eMedia Holdings Limited and British American Tobacco, you can compare the effects of market volatilities on EMedia Holdings and British Amer 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 EMedia Holdings with a short position of British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMedia Holdings and British Amer.
Diversification Opportunities for EMedia Holdings and British Amer
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EMedia and British is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding eMedia Holdings Limited and British American Tobacco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on British American Tobacco and EMedia Holdings 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 eMedia Holdings Limited are associated (or correlated) with British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of British American Tobacco has no effect on the direction of EMedia Holdings i.e., EMedia Holdings and British Amer go up and down completely randomly.
Pair Corralation between EMedia Holdings and British Amer
Assuming the 90 days trading horizon EMedia Holdings is expected to generate 4.22 times less return on investment than British Amer. In addition to that, EMedia Holdings is 2.01 times more volatile than British American Tobacco. It trades about 0.01 of its total potential returns per unit of risk. British American Tobacco is currently generating about 0.06 per unit of volatility. If you would invest 5,312,564 in British American Tobacco on August 31, 2024 and sell it today you would earn a total of 1,519,436 from holding British American Tobacco or generate 28.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
eMedia Holdings Limited vs. British American Tobacco
Performance |
| Timeline |
| eMedia Holdings |
| British American Tobacco |
EMedia Holdings and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMedia Holdings and British Amer
The main advantage of trading using opposite EMedia Holdings and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMedia Holdings position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.| EMedia Holdings vs. CA Sales Holdings | EMedia Holdings vs. Astral Foods | EMedia Holdings vs. Astoria Investments | EMedia Holdings vs. ABSA Bank Limited |
| British Amer vs. Centaur Bci Balanced | British Amer vs. Sabvest Capital | British Amer vs. AfricaRhodium ETF | British Amer vs. Indexco Limited |
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.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |