Correlation Between Media and Bambuser
Can any of the company-specific risk be diversified away by investing in both Media and Bambuser 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 Media and Bambuser into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Media and Games and Bambuser AB, you can compare the effects of market volatilities on Media and Bambuser 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 Media with a short position of Bambuser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and Bambuser.
Diversification Opportunities for Media and Bambuser
Pay attention - limited upside
The 3 months correlation between Media and Bambuser is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games and Bambuser AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bambuser AB and 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 Media and Games are associated (or correlated) with Bambuser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bambuser AB has no effect on the direction of Media i.e., Media and Bambuser go up and down completely randomly.
Pair Corralation between Media and Bambuser
Assuming the 90 days trading horizon Media and Games is expected to generate 0.5 times more return on investment than Bambuser. However, Media and Games is 1.98 times less risky than Bambuser. It trades about 0.16 of its potential returns per unit of risk. Bambuser AB is currently generating about -0.2 per unit of risk. If you would invest 4,200 in Media and Games on August 29, 2024 and sell it today you would earn a total of 485.00 from holding Media and Games or generate 11.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Media and Games vs. Bambuser AB
Performance |
| Timeline |
| Media and Games |
| Bambuser AB |
Media and Bambuser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and Bambuser
The main advantage of trading using opposite Media and Bambuser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media position performs unexpectedly, Bambuser 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 Bambuser will offset losses from the drop in Bambuser's long position.| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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