Correlation Between International Media and Bayview Acquisition
Can any of the company-specific risk be diversified away by investing in both International Media and Bayview Acquisition 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 International Media and Bayview Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Media Acquisition and Bayview Acquisition Corp, you can compare the effects of market volatilities on International Media and Bayview Acquisition 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 International Media with a short position of Bayview Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Media and Bayview Acquisition.
Diversification Opportunities for International Media and Bayview Acquisition
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between International and Bayview is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding International Media Acquisitio and Bayview Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayview Acquisition Corp and International 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 International Media Acquisition are associated (or correlated) with Bayview Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayview Acquisition Corp has no effect on the direction of International Media i.e., International Media and Bayview Acquisition go up and down completely randomly.
Pair Corralation between International Media and Bayview Acquisition
Assuming the 90 days horizon International Media Acquisition is expected to generate 6.21 times more return on investment than Bayview Acquisition. However, International Media is 6.21 times more volatile than Bayview Acquisition Corp. It trades about 0.08 of its potential returns per unit of risk. Bayview Acquisition Corp is currently generating about 0.09 per unit of risk. If you would invest 7.50 in International Media Acquisition on August 30, 2024 and sell it today you would lose (1.50) from holding International Media Acquisition or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 36.68% |
| Values | Daily Returns |
International Media Acquisitio vs. Bayview Acquisition Corp
Performance |
| Timeline |
| International Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bayview Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
International Media and Bayview Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Media and Bayview Acquisition
The main advantage of trading using opposite International Media and Bayview Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Media position performs unexpectedly, Bayview Acquisition 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 Bayview Acquisition will offset losses from the drop in Bayview Acquisition's long position.| International Media vs. Asbury Automotive Group | International Media vs. BBB Foods | International Media vs. Where Food Comes | International Media vs. Fast Retailing Co |
| Bayview Acquisition vs. Arrow Electronics | Bayview Acquisition vs. Freedom Internet Group | Bayview Acquisition vs. Constellation Brands Class | Bayview Acquisition vs. Oatly Group AB |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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