Correlation Between Here Media and Strong Global
Can any of the company-specific risk be diversified away by investing in both Here Media and Strong Global 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 Here Media and Strong Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Here Media and Strong Global Entertainment,, you can compare the effects of market volatilities on Here Media and Strong Global 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 Here Media with a short position of Strong Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Here Media and Strong Global.
Diversification Opportunities for Here Media and Strong Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Here and Strong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Here Media and Strong Global Entertainment, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strong Global Entert and Here Media 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 Here Media are associated (or correlated) with Strong Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strong Global Entert has no effect on the direction of Here Media i.e., Here Media and Strong Global go up and down completely randomly.
Pair Corralation between Here Media and Strong Global
Assuming the 90 days horizon Here Media is expected to generate 0.53 times more return on investment than Strong Global. However, Here Media is 1.88 times less risky than Strong Global. It trades about 0.05 of its potential returns per unit of risk. Strong Global Entertainment, is currently generating about 0.01 per unit of risk. If you would invest 0.01 in Here Media on September 2, 2024 and sell it today you would earn a total of 0.01 from holding Here Media or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 88.2% |
| Values | Daily Returns |
Here Media vs. Strong Global Entertainment,
Performance |
| Timeline |
| Here Media |
| Strong Global Entert |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Here Media and Strong Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Here Media and Strong Global
The main advantage of trading using opposite Here Media and Strong Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Here Media position performs unexpectedly, Strong Global 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 Strong Global will offset losses from the drop in Strong Global's long position.| Here Media vs. The Wendys Co | Here Media vs. Biglari Holdings | Here Media vs. Dine Brands Global | Here Media vs. Dalata Hotel Group |
| Strong Global vs. Catalyst Pharmaceuticals | Strong Global vs. United Rentals | Strong Global vs. Ardelyx | Strong Global vs. China Aircraft Leasing |
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.
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