Correlation Between Growthpoint Properties and E Media
Can any of the company-specific risk be diversified away by investing in both Growthpoint Properties and E 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 Growthpoint Properties and E Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growthpoint Properties and E Media Holdings, you can compare the effects of market volatilities on Growthpoint Properties and E 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 Growthpoint Properties with a short position of E Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growthpoint Properties and E Media.
Diversification Opportunities for Growthpoint Properties and E Media
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Growthpoint and EMH is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Growthpoint Properties and E Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Media Holdings and Growthpoint Properties 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 Growthpoint Properties are associated (or correlated) with E Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Media Holdings has no effect on the direction of Growthpoint Properties i.e., Growthpoint Properties and E Media go up and down completely randomly.
Pair Corralation between Growthpoint Properties and E Media
Assuming the 90 days trading horizon Growthpoint Properties is expected to under-perform the E Media. In addition to that, Growthpoint Properties is 8.11 times more volatile than E Media Holdings. It trades about -0.06 of its total potential returns per unit of risk. E Media Holdings is currently generating about 0.1 per unit of volatility. If you would invest 34,300 in E Media Holdings on September 3, 2024 and sell it today you would earn a total of 100.00 from holding E Media Holdings or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Growthpoint Properties vs. E Media Holdings
Performance |
| Timeline |
| Growthpoint Properties |
| E Media Holdings |
Growthpoint Properties and E Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growthpoint Properties and E Media
The main advantage of trading using opposite Growthpoint Properties and E Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growthpoint Properties position performs unexpectedly, E 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 E Media will offset losses from the drop in E Media's long position.| Growthpoint Properties vs. Harmony Gold Mining | Growthpoint Properties vs. Astoria Investments | Growthpoint Properties vs. Trematon Capital Investments | Growthpoint Properties vs. RCL Foods |
| E Media vs. eMedia Holdings Limited | E Media vs. Sasol Ltd Bee | E Media vs. Centaur Bci Balanced | E Media vs. Sabvest Capital |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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