Correlation Between Integrated Media and CenterPoint Energy
Can any of the company-specific risk be diversified away by investing in both Integrated Media and CenterPoint Energy 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 Integrated Media and CenterPoint Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Media Technology and CenterPoint Energy, you can compare the effects of market volatilities on Integrated Media and CenterPoint Energy 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 Integrated Media with a short position of CenterPoint Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Media and CenterPoint Energy.
Diversification Opportunities for Integrated Media and CenterPoint Energy
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Integrated and CenterPoint is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Media Technology and CenterPoint Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CenterPoint Energy and Integrated 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 Integrated Media Technology are associated (or correlated) with CenterPoint Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CenterPoint Energy has no effect on the direction of Integrated Media i.e., Integrated Media and CenterPoint Energy go up and down completely randomly.
Pair Corralation between Integrated Media and CenterPoint Energy
Given the investment horizon of 90 days Integrated Media Technology is expected to under-perform the CenterPoint Energy. In addition to that, Integrated Media is 3.86 times more volatile than CenterPoint Energy. It trades about -0.04 of its total potential returns per unit of risk. CenterPoint Energy is currently generating about 0.2 per unit of volatility. If you would invest 2,839 in CenterPoint Energy on November 1, 2024 and sell it today you would earn a total of 449.00 from holding CenterPoint Energy or generate 15.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Media Technology vs. CenterPoint Energy
Performance |
| Timeline |
| Integrated Media Tec |
| CenterPoint Energy |
Integrated Media and CenterPoint Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Media and CenterPoint Energy
The main advantage of trading using opposite Integrated Media and CenterPoint Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Media position performs unexpectedly, CenterPoint Energy 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 CenterPoint Energy will offset losses from the drop in CenterPoint Energy's long position.| Integrated Media vs. SigmaTron International | Integrated Media vs. Data IO | Integrated Media vs. Research Frontiers Incorporated | Integrated Media vs. Maris Tech |
| CenterPoint Energy vs. DTE Energy | CenterPoint Energy vs. Alliant Energy Corp | CenterPoint Energy vs. Ameren Corp | CenterPoint Energy vs. Pinnacle West Capital |
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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