Correlation Between Humble Group and Media
Can any of the company-specific risk be diversified away by investing in both Humble Group and 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 Humble Group and Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humble Group AB and Media and Games, you can compare the effects of market volatilities on Humble Group and 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 Humble Group with a short position of Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humble Group and Media.
Diversification Opportunities for Humble Group and Media
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Humble and Media is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Humble Group AB and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games and Humble Group 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 Humble Group AB are associated (or correlated) with Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of Humble Group i.e., Humble Group and Media go up and down completely randomly.
Pair Corralation between Humble Group and Media
Assuming the 90 days trading horizon Humble Group is expected to generate 2.6 times less return on investment than Media. But when comparing it to its historical volatility, Humble Group AB is 1.32 times less risky than Media. It trades about 0.02 of its potential returns per unit of risk. Media and Games is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,956 in Media and Games on October 9, 2024 and sell it today you would earn a total of 1,449 from holding Media and Games or generate 74.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humble Group AB vs. Media and Games
Performance |
| Timeline |
| Humble Group AB |
| Media and Games |
Humble Group and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humble Group and Media
The main advantage of trading using opposite Humble Group and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humble Group position performs unexpectedly, 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 Media will offset losses from the drop in Media's long position.| Humble Group vs. Know IT AB | Humble Group vs. Cloetta AB | Humble Group vs. BioGaia AB | Humble Group vs. Byggmax Group AB |
| Media vs. Embracer Group AB | Media vs. Samhllsbyggnadsbolaget i Norden | Media vs. Sinch AB | Media vs. Zaptec AS |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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