Correlation Between Grand Vision and Atresmedia
Can any of the company-specific risk be diversified away by investing in both Grand Vision and Atresmedia 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 Grand Vision and Atresmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Vision Media and Atresmedia, you can compare the effects of market volatilities on Grand Vision and Atresmedia 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 Grand Vision with a short position of Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Vision and Atresmedia.
Diversification Opportunities for Grand Vision and Atresmedia
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grand and Atresmedia is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Grand Vision Media and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia and Grand Vision 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 Grand Vision Media are associated (or correlated) with Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of Grand Vision i.e., Grand Vision and Atresmedia go up and down completely randomly.
Pair Corralation between Grand Vision and Atresmedia
Assuming the 90 days trading horizon Grand Vision Media is expected to generate 31.17 times more return on investment than Atresmedia. However, Grand Vision is 31.17 times more volatile than Atresmedia. It trades about 0.05 of its potential returns per unit of risk. Atresmedia is currently generating about 0.08 per unit of risk. If you would invest 20.00 in Grand Vision Media on August 24, 2024 and sell it today you would earn a total of 78.00 from holding Grand Vision Media or generate 390.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Vision Media vs. Atresmedia
Performance |
| Timeline |
| Grand Vision Media |
| Atresmedia |
Grand Vision and Atresmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Vision and Atresmedia
The main advantage of trading using opposite Grand Vision and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Vision position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia's long position.| Grand Vision vs. Premier Foods PLC | Grand Vision vs. Roebuck Food Group | Grand Vision vs. Associated British Foods | Grand Vision vs. Ebro Foods |
| Atresmedia vs. Quadrise Plc | Atresmedia vs. Intuitive Investments Group | Atresmedia vs. European Metals Holdings | Atresmedia vs. Athelney Trust plc |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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