Correlation Between EMedia Holdings and Trematon Capital
Can any of the company-specific risk be diversified away by investing in both EMedia Holdings and Trematon Capital 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 Trematon Capital 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 Trematon Capital Investments, you can compare the effects of market volatilities on EMedia Holdings and Trematon Capital 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 Trematon Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMedia Holdings and Trematon Capital.
Diversification Opportunities for EMedia Holdings and Trematon Capital
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between EMedia and Trematon is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding eMedia Holdings Limited and Trematon Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trematon Capital Inv 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 Trematon Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trematon Capital Inv has no effect on the direction of EMedia Holdings i.e., EMedia Holdings and Trematon Capital go up and down completely randomly.
Pair Corralation between EMedia Holdings and Trematon Capital
Assuming the 90 days trading horizon eMedia Holdings Limited is expected to under-perform the Trematon Capital. But the stock apears to be less risky and, when comparing its historical volatility, eMedia Holdings Limited is 1.49 times less risky than Trematon Capital. The stock trades about -0.1 of its potential returns per unit of risk. The Trematon Capital Investments is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 23,600 in Trematon Capital Investments on August 29, 2024 and sell it today you would lose (100.00) from holding Trematon Capital Investments or give up 0.42% 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. Trematon Capital Investments
Performance |
| Timeline |
| eMedia Holdings |
| Trematon Capital Inv |
EMedia Holdings and Trematon Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMedia Holdings and Trematon Capital
The main advantage of trading using opposite EMedia Holdings and Trematon Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMedia Holdings position performs unexpectedly, Trematon Capital 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 Trematon Capital will offset losses from the drop in Trematon Capital's long position.| EMedia Holdings vs. Centaur Bci Balanced | EMedia Holdings vs. Growthpoint Properties | EMedia Holdings vs. Bowler Metcalf | EMedia Holdings vs. Shoprite Holdings |
| Trematon Capital vs. Lighthouse Capital | Trematon Capital vs. Centaur Bci Balanced | Trematon Capital vs. Sabvest Capital | Trematon Capital vs. Growthpoint Properties |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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