Correlation Between Grand Vision and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both Grand Vision 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 Grand Vision and XLMedia PLC 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 XLMedia PLC, you can compare the effects of market volatilities on Grand Vision 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 Grand Vision with a short position of XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Vision and XLMedia PLC.
Diversification Opportunities for Grand Vision and XLMedia PLC
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grand and XLMedia is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Grand Vision Media and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC 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 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 Grand Vision i.e., Grand Vision and XLMedia PLC go up and down completely randomly.
Pair Corralation between Grand Vision and XLMedia PLC
Assuming the 90 days trading horizon Grand Vision is expected to generate 6.8 times less return on investment than XLMedia PLC. But when comparing it to its historical volatility, Grand Vision Media is 2.12 times less risky than XLMedia PLC. It trades about 0.01 of its potential returns per unit of risk. XLMedia PLC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 850.00 in XLMedia PLC on August 31, 2024 and sell it today you would earn a total of 340.00 from holding XLMedia PLC or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Vision Media vs. XLMedia PLC
Performance |
| Timeline |
| Grand Vision Media |
| XLMedia PLC |
Grand Vision and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Vision and XLMedia PLC
The main advantage of trading using opposite Grand Vision and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Vision 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.| Grand Vision vs. The Mercantile Investment | Grand Vision vs. United States Steel | Grand Vision vs. Veolia Environnement VE | Grand Vision vs. Tatton Asset Management |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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