Correlation Between Far East and Media
Can any of the company-specific risk be diversified away by investing in both Far East and Media 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 Far East and Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Far East Horizon and Media and Games, you can compare the effects of market volatilities on Far East and Media 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 Far East with a short position of Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Far East and Media.
Diversification Opportunities for Far East and Media
Pay attention - limited upside
The 3 months correlation between Far and Media is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Far East Horizon and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games and Far East 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 Far East Horizon are associated (or correlated) with Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of Far East i.e., Far East and Media go up and down completely randomly.
Pair Corralation between Far East and Media
Assuming the 90 days horizon Far East Horizon is expected to generate 0.33 times more return on investment than Media. However, Far East Horizon is 3.05 times less risky than Media. It trades about 0.06 of its potential returns per unit of risk. Media and Games is currently generating about -0.02 per unit of risk. If you would invest 64.00 in Far East Horizon on October 30, 2024 and sell it today you would earn a total of 1.00 from holding Far East Horizon or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Far East Horizon vs. Media and Games
Performance |
| Timeline |
| Far East Horizon |
| Media and Games |
Far East and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Far East and Media
The main advantage of trading using opposite Far East and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Far East position performs unexpectedly, Media 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 Media will offset losses from the drop in Media's long position.| Far East vs. GAZTRTECHNIUADR15EO01 | Far East vs. Vishay Intertechnology | Far East vs. Easy Software AG | Far East vs. Micron Technology |
| Media vs. ALTAIR RES INC | Media vs. Air Transport Services | Media vs. Westinghouse Air Brake | Media vs. SOEDER SPORTFISKE AB |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |