Correlation Between Haoxi Health and Cumulus Media
Can any of the company-specific risk be diversified away by investing in both Haoxi Health and Cumulus 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 Haoxi Health and Cumulus Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haoxi Health Technology and Cumulus Media Class, you can compare the effects of market volatilities on Haoxi Health and Cumulus 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 Haoxi Health with a short position of Cumulus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haoxi Health and Cumulus Media.
Diversification Opportunities for Haoxi Health and Cumulus Media
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haoxi and Cumulus is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Haoxi Health Technology and Cumulus Media Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumulus Media Class and Haoxi Health 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 Haoxi Health Technology are associated (or correlated) with Cumulus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumulus Media Class has no effect on the direction of Haoxi Health i.e., Haoxi Health and Cumulus Media go up and down completely randomly.
Pair Corralation between Haoxi Health and Cumulus Media
Considering the 90-day investment horizon Haoxi Health Technology is expected to under-perform the Cumulus Media. In addition to that, Haoxi Health is 2.72 times more volatile than Cumulus Media Class. It trades about -0.06 of its total potential returns per unit of risk. Cumulus Media Class is currently generating about -0.09 per unit of volatility. If you would invest 728.00 in Cumulus Media Class on August 27, 2024 and sell it today you would lose (655.00) from holding Cumulus Media Class or give up 89.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 42.54% |
| Values | Daily Returns |
Haoxi Health Technology vs. Cumulus Media Class
Performance |
| Timeline |
| Haoxi Health Technology |
| Cumulus Media Class |
Haoxi Health and Cumulus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haoxi Health and Cumulus Media
The main advantage of trading using opposite Haoxi Health and Cumulus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haoxi Health position performs unexpectedly, Cumulus 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 Cumulus Media will offset losses from the drop in Cumulus Media's long position.| Haoxi Health vs. CuriosityStream | Haoxi Health vs. iQIYI Inc | Haoxi Health vs. Sea | Haoxi Health vs. Scienjoy Holding Corp |
| Cumulus Media vs. E W Scripps | Cumulus Media vs. Gray Television | Cumulus Media vs. ProSiebenSat1 Media AG | Cumulus Media vs. RTL Group SA |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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