Correlation Between EMedia Holdings and RMB Holdings
Can any of the company-specific risk be diversified away by investing in both EMedia Holdings and RMB Holdings 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 RMB Holdings 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 RMB Holdings, you can compare the effects of market volatilities on EMedia Holdings and RMB Holdings 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 RMB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMedia Holdings and RMB Holdings.
Diversification Opportunities for EMedia Holdings and RMB Holdings
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between EMedia and RMB is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding eMedia Holdings Limited and RMB Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RMB Holdings 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 RMB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RMB Holdings has no effect on the direction of EMedia Holdings i.e., EMedia Holdings and RMB Holdings go up and down completely randomly.
Pair Corralation between EMedia Holdings and RMB Holdings
Assuming the 90 days trading horizon eMedia Holdings Limited is expected to under-perform the RMB Holdings. In addition to that, EMedia Holdings is 1.01 times more volatile than RMB Holdings. It trades about -0.03 of its total potential returns per unit of risk. RMB Holdings is currently generating about 0.07 per unit of volatility. If you would invest 4,100 in RMB Holdings on September 2, 2024 and sell it today you would earn a total of 100.00 from holding RMB Holdings or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
eMedia Holdings Limited vs. RMB Holdings
Performance |
| Timeline |
| eMedia Holdings |
| RMB Holdings |
EMedia Holdings and RMB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMedia Holdings and RMB Holdings
The main advantage of trading using opposite EMedia Holdings and RMB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMedia Holdings position performs unexpectedly, RMB Holdings 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 RMB Holdings will offset losses from the drop in RMB Holdings' long position.| EMedia Holdings vs. MultiChoice Group | EMedia Holdings vs. Sasol Ltd Bee | EMedia Holdings vs. Growthpoint Properties | EMedia Holdings vs. AfricaRhodium ETF |
| RMB Holdings vs. African Media Entertainment | RMB Holdings vs. ABSA Bank Limited | RMB Holdings vs. eMedia Holdings Limited | RMB Holdings vs. HomeChoice Investments |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |