Correlation Between Media and FIRST NATIONAL
Can any of the company-specific risk be diversified away by investing in both Media and FIRST NATIONAL 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 FIRST NATIONAL 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 FIRST NATIONAL FIN, you can compare the effects of market volatilities on Media and FIRST NATIONAL 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 FIRST NATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and FIRST NATIONAL.
Diversification Opportunities for Media and FIRST NATIONAL
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Media and FIRST is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games and FIRST NATIONAL FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST NATIONAL FIN 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 FIRST NATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST NATIONAL FIN has no effect on the direction of Media i.e., Media and FIRST NATIONAL go up and down completely randomly.
Pair Corralation between Media and FIRST NATIONAL
Assuming the 90 days trading horizon Media is expected to generate 1.47 times less return on investment than FIRST NATIONAL. In addition to that, Media is 1.73 times more volatile than FIRST NATIONAL FIN. It trades about 0.07 of its total potential returns per unit of risk. FIRST NATIONAL FIN is currently generating about 0.17 per unit of volatility. If you would invest 2,385 in FIRST NATIONAL FIN on September 2, 2024 and sell it today you would earn a total of 555.00 from holding FIRST NATIONAL FIN or generate 23.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Media and Games vs. FIRST NATIONAL FIN
Performance |
| Timeline |
| Media and Games |
| FIRST NATIONAL FIN |
Media and FIRST NATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and FIRST NATIONAL
The main advantage of trading using opposite Media and FIRST NATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media position performs unexpectedly, FIRST NATIONAL 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 FIRST NATIONAL will offset losses from the drop in FIRST NATIONAL's long position.| Media vs. Clearside Biomedical | Media vs. Japan Medical Dynamic | Media vs. Apollo Medical Holdings | Media vs. BRIT AMER TOBACCO |
| FIRST NATIONAL vs. CITY OFFICE REIT | FIRST NATIONAL vs. Media and Games | FIRST NATIONAL vs. Warner Music Group | FIRST NATIONAL vs. Corporate Office Properties |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |