Correlation Between FP Newspapers and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both FP Newspapers and XLMedia PLC 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 FP Newspapers and XLMedia PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FP Newspapers and XLMedia PLC, you can compare the effects of market volatilities on FP Newspapers and XLMedia PLC 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 FP Newspapers with a short position of XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of FP Newspapers and XLMedia PLC.
Diversification Opportunities for FP Newspapers and XLMedia PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FPNUF and XLMedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FP Newspapers and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC and FP Newspapers 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 FP Newspapers are associated (or correlated) with XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of FP Newspapers i.e., FP Newspapers and XLMedia PLC go up and down completely randomly.
Pair Corralation between FP Newspapers and XLMedia PLC
If you would invest 14.00 in XLMedia PLC on August 30, 2024 and sell it today you would earn a total of 3.00 from holding XLMedia PLC or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FP Newspapers vs. XLMedia PLC
Performance |
| Timeline |
| FP Newspapers |
| XLMedia PLC |
FP Newspapers and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FP Newspapers and XLMedia PLC
The main advantage of trading using opposite FP Newspapers and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FP Newspapers position performs unexpectedly, XLMedia PLC 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.| FP Newspapers vs. Bank Rakyat | FP Newspapers vs. PT Bank Rakyat | FP Newspapers vs. Samsung Electronics Co | FP Newspapers vs. Bank Mandiri Persero |
| XLMedia PLC vs. FP Newspapers | XLMedia PLC vs. RCS MediaGroup SpA | XLMedia PLC vs. Scholastic | XLMedia PLC vs. Lee Enterprises Incorporated |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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