Correlation Between Media and Mantex AB
Can any of the company-specific risk be diversified away by investing in both Media and Mantex AB 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 Mantex AB 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 Mantex AB, you can compare the effects of market volatilities on Media and Mantex AB 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 Mantex AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and Mantex AB.
Diversification Opportunities for Media and Mantex AB
Pay attention - limited upside
The 3 months correlation between Media and Mantex is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games and Mantex AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mantex 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 Mantex AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mantex AB has no effect on the direction of Media i.e., Media and Mantex AB go up and down completely randomly.
Pair Corralation between Media and Mantex AB
Assuming the 90 days trading horizon Media and Games is expected to generate 0.54 times more return on investment than Mantex AB. However, Media and Games is 1.84 times less risky than Mantex AB. It trades about 0.04 of its potential returns per unit of risk. Mantex AB is currently generating about -0.28 per unit of risk. If you would invest 4,520 in Media and Games on August 31, 2024 and sell it today you would earn a total of 90.00 from holding Media and Games or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Media and Games vs. Mantex AB
Performance |
| Timeline |
| Media and Games |
| Mantex AB |
Media and Mantex AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and Mantex AB
The main advantage of trading using opposite Media and Mantex AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media position performs unexpectedly, Mantex AB 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 Mantex AB will offset losses from the drop in Mantex AB's long position.| Media vs. MilDef Group AB | Media vs. Enad Global 7 | Media vs. Fractal Gaming Group | Media vs. KABE 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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