Correlation Between Media and Modelon AB
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By analyzing existing cross correlation between Media and Games and Modelon AB Cl, you can compare the effects of market volatilities on Media and Modelon 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 Modelon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and Modelon AB.
Diversification Opportunities for Media and Modelon AB
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Media and Modelon is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games and Modelon AB Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modelon AB Cl 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 Modelon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modelon AB Cl has no effect on the direction of Media i.e., Media and Modelon AB go up and down completely randomly.
Pair Corralation between Media and Modelon AB
Assuming the 90 days trading horizon Media and Games is expected to generate 1.41 times more return on investment than Modelon AB. However, Media is 1.41 times more volatile than Modelon AB Cl. It trades about 0.15 of its potential returns per unit of risk. Modelon AB Cl is currently generating about 0.05 per unit of risk. If you would invest 1,900 in Media and Games on September 1, 2024 and sell it today you would earn a total of 2,200 from holding Media and Games or generate 115.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Media and Games vs. Modelon AB Cl
Performance |
| Timeline |
| Media and Games |
| Modelon AB Cl |
Media and Modelon AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and Modelon AB
The main advantage of trading using opposite Media and Modelon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media position performs unexpectedly, Modelon 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 Modelon AB will offset losses from the drop in Modelon AB's long position.| Media vs. Embracer Group AB | Media vs. Samhllsbyggnadsbolaget i Norden | Media vs. Sinch AB | Media vs. Zaptec AS |
| Modelon AB vs. Greater Than AB | Modelon AB vs. FormPipe Software AB | Modelon AB vs. MOBA Network publ | Modelon AB vs. Exsitec Holding 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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