Correlation Between Gyldendal ASA and Polaris Media
Can any of the company-specific risk be diversified away by investing in both Gyldendal ASA and Polaris 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 Gyldendal ASA and Polaris Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gyldendal ASA and Polaris Media, you can compare the effects of market volatilities on Gyldendal ASA and Polaris 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 Gyldendal ASA with a short position of Polaris Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gyldendal ASA and Polaris Media.
Diversification Opportunities for Gyldendal ASA and Polaris Media
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gyldendal and Polaris is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gyldendal ASA and Polaris Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polaris Media and Gyldendal ASA 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 Gyldendal ASA are associated (or correlated) with Polaris Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polaris Media has no effect on the direction of Gyldendal ASA i.e., Gyldendal ASA and Polaris Media go up and down completely randomly.
Pair Corralation between Gyldendal ASA and Polaris Media
Assuming the 90 days trading horizon Gyldendal ASA is expected to under-perform the Polaris Media. But the stock apears to be less risky and, when comparing its historical volatility, Gyldendal ASA is 1.19 times less risky than Polaris Media. The stock trades about -0.02 of its potential returns per unit of risk. The Polaris Media is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,226 in Polaris Media on August 25, 2024 and sell it today you would earn a total of 3,374 from holding Polaris Media or generate 64.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Gyldendal ASA vs. Polaris Media
Performance |
| Timeline |
| Gyldendal ASA |
| Polaris Media |
Gyldendal ASA and Polaris Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gyldendal ASA and Polaris Media
The main advantage of trading using opposite Gyldendal ASA and Polaris Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gyldendal ASA position performs unexpectedly, Polaris 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 Polaris Media will offset losses from the drop in Polaris Media's long position.| Gyldendal ASA vs. Europris ASA | Gyldendal ASA vs. Selvaag Bolig ASA | Gyldendal ASA vs. Storebrand ASA | Gyldendal ASA vs. Kitron ASA |
| Polaris Media vs. Kid ASA | Polaris Media vs. Byggma | Polaris Media vs. American Shipping | Polaris Media vs. Kitron ASA |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |