Correlation Between US Global and Here Media
Can any of the company-specific risk be diversified away by investing in both US Global and Here 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 US Global and Here Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Investors and Here Media, you can compare the effects of market volatilities on US Global and Here 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 US Global with a short position of Here Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Here Media.
Diversification Opportunities for US Global and Here Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GROW and Here is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors and Here Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Here Media and US Global 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 US Global Investors are associated (or correlated) with Here Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Here Media has no effect on the direction of US Global i.e., US Global and Here Media go up and down completely randomly.
Pair Corralation between US Global and Here Media
Given the investment horizon of 90 days US Global Investors is expected to under-perform the Here Media. But the stock apears to be less risky and, when comparing its historical volatility, US Global Investors is 2.92 times less risky than Here Media. The stock trades about -0.02 of its potential returns per unit of risk. The Here Media is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Here Media on October 10, 2024 and sell it today you would earn a total of 0.01 from holding Here Media or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
US Global Investors vs. Here Media
Performance |
| Timeline |
| US Global Investors |
| Here Media |
US Global and Here Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and Here Media
The main advantage of trading using opposite US Global and Here Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global position performs unexpectedly, Here 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 Here Media will offset losses from the drop in Here Media's long position.| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
| Here Media vs. Monster Beverage Corp | Here Media vs. Air Lease | Here Media vs. Primo Brands | Here Media vs. Ryder System |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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