Correlation Between International Media and Centurion Acquisition
Can any of the company-specific risk be diversified away by investing in both International Media and Centurion 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 Centurion 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 Centurion Acquisition Corp, you can compare the effects of market volatilities on International Media and Centurion 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 Centurion Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Media and Centurion Acquisition.
Diversification Opportunities for International Media and Centurion Acquisition
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Centurion is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding International Media Acquisitio and Centurion Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centurion Acquisition 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 Centurion Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centurion Acquisition has no effect on the direction of International Media i.e., International Media and Centurion Acquisition go up and down completely randomly.
Pair Corralation between International Media and Centurion Acquisition
Assuming the 90 days horizon International Media is expected to generate 223.45 times less return on investment than Centurion Acquisition. But when comparing it to its historical volatility, International Media Acquisition is 80.92 times less risky than Centurion Acquisition. It trades about 0.03 of its potential returns per unit of risk. Centurion Acquisition Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3.50 in Centurion Acquisition Corp on August 30, 2024 and sell it today you would earn a total of 1,004 from holding Centurion Acquisition Corp or generate 28671.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.38% |
| Values | Daily Returns |
International Media Acquisitio vs. Centurion Acquisition Corp
Performance |
| Timeline |
| International Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Centurion Acquisition |
International Media and Centurion Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Media and Centurion Acquisition
The main advantage of trading using opposite International Media and Centurion Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Media position performs unexpectedly, Centurion 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 Centurion Acquisition will offset losses from the drop in Centurion Acquisition's long position.| International Media vs. ScanSource | International Media vs. Relx PLC ADR | International Media vs. Universal Technical Institute | International Media vs. Playtika Holding Corp |
| Centurion Acquisition vs. Voyager Acquisition Corp | Centurion Acquisition vs. YHN Acquisition I | Centurion Acquisition vs. Vine Hill Capital | Centurion Acquisition vs. DP Cap Acquisition |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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