Correlation Between EMedia Holdings and MC Mining
Can any of the company-specific risk be diversified away by investing in both EMedia Holdings and MC Mining 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 MC Mining 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 MC Mining, you can compare the effects of market volatilities on EMedia Holdings and MC Mining 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 MC Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMedia Holdings and MC Mining.
Diversification Opportunities for EMedia Holdings and MC Mining
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EMedia and MCZ is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding eMedia Holdings Limited and MC Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MC Mining 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 MC Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MC Mining has no effect on the direction of EMedia Holdings i.e., EMedia Holdings and MC Mining go up and down completely randomly.
Pair Corralation between EMedia Holdings and MC Mining
Assuming the 90 days trading horizon eMedia Holdings Limited is expected to generate 11.62 times more return on investment than MC Mining. However, EMedia Holdings is 11.62 times more volatile than MC Mining. It trades about 0.06 of its potential returns per unit of risk. MC Mining is currently generating about -0.01 per unit of risk. If you would invest 37,365 in eMedia Holdings Limited on October 11, 2024 and sell it today you would lose (1,465) from holding eMedia Holdings Limited or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
eMedia Holdings Limited vs. MC Mining
Performance |
| Timeline |
| eMedia Holdings |
| MC Mining |
EMedia Holdings and MC Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMedia Holdings and MC Mining
The main advantage of trading using opposite EMedia Holdings and MC Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMedia Holdings position performs unexpectedly, MC Mining 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 MC Mining will offset losses from the drop in MC Mining's long position.| EMedia Holdings vs. Boxer Retail | EMedia Holdings vs. CA Sales Holdings | EMedia Holdings vs. HomeChoice Investments | EMedia Holdings vs. City Lodge Hotels |
| MC Mining vs. Harmony Gold Mining | MC Mining vs. Life Healthcare | MC Mining vs. CA Sales Holdings | MC Mining vs. eMedia Holdings 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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