Correlation Between International Media and Black Hills
Can any of the company-specific risk be diversified away by investing in both International Media and Black Hills 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 Black Hills 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 Black Hills, you can compare the effects of market volatilities on International Media and Black Hills 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 Black Hills. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Media and Black Hills.
Diversification Opportunities for International Media and Black Hills
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Black is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding International Media Acquisitio and Black Hills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Hills 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 Black Hills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Hills has no effect on the direction of International Media i.e., International Media and Black Hills go up and down completely randomly.
Pair Corralation between International Media and Black Hills
If you would invest 6,049 in Black Hills on August 30, 2024 and sell it today you would earn a total of 345.00 from holding Black Hills or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.27% |
| Values | Daily Returns |
International Media Acquisitio vs. Black Hills
Performance |
| Timeline |
| International Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Black Hills |
International Media and Black Hills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Media and Black Hills
The main advantage of trading using opposite International Media and Black Hills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Media position performs unexpectedly, Black Hills 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 Black Hills will offset losses from the drop in Black Hills' 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 |
| Black Hills vs. NorthWestern | Black Hills vs. Avista | Black Hills vs. Otter Tail | Black Hills vs. Companhia Paranaense de |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |