Correlation Between Glassbox and Creative Media
Can any of the company-specific risk be diversified away by investing in both Glassbox and Creative 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 Glassbox and Creative Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glassbox and Creative Media Community, you can compare the effects of market volatilities on Glassbox and Creative 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 Glassbox with a short position of Creative Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glassbox and Creative Media.
Diversification Opportunities for Glassbox and Creative Media
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glassbox and Creative is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Glassbox and Creative Media Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creative Media Community and Glassbox 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 Glassbox are associated (or correlated) with Creative Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creative Media Community has no effect on the direction of Glassbox i.e., Glassbox and Creative Media go up and down completely randomly.
Pair Corralation between Glassbox and Creative Media
Assuming the 90 days trading horizon Glassbox is expected to generate 0.45 times more return on investment than Creative Media. However, Glassbox is 2.2 times less risky than Creative Media. It trades about 0.07 of its potential returns per unit of risk. Creative Media Community is currently generating about -0.34 per unit of risk. If you would invest 377,400 in Glassbox on August 29, 2024 and sell it today you would earn a total of 28,500 from holding Glassbox or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 71.74% |
| Values | Daily Returns |
Glassbox vs. Creative Media Community
Performance |
| Timeline |
| Glassbox |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Creative Media Community |
Glassbox and Creative Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glassbox and Creative Media
The main advantage of trading using opposite Glassbox and Creative Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glassbox position performs unexpectedly, Creative 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 Creative Media will offset losses from the drop in Creative Media's long position.| Glassbox vs. MediPress Health Limited Partnership | Glassbox vs. Hiron Trade Investments Industrial | Glassbox vs. Clal Insurance Enterprises | Glassbox vs. Veridis Environment |
| Creative Media vs. Nice | Creative Media vs. The Gold Bond | Creative Media vs. Bank Leumi Le Israel | Creative Media vs. ICL Israel Chemicals |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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