Correlation Between Media and FOSTOURGRP
Can any of the company-specific risk be diversified away by investing in both Media and FOSTOURGRP 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 FOSTOURGRP 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 FOSTOURGRP EO 0001, you can compare the effects of market volatilities on Media and FOSTOURGRP 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 FOSTOURGRP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and FOSTOURGRP.
Diversification Opportunities for Media and FOSTOURGRP
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Media and FOSTOURGRP is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games and FOSTOURGRP EO 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOSTOURGRP EO 0001 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 FOSTOURGRP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOSTOURGRP EO 0001 has no effect on the direction of Media i.e., Media and FOSTOURGRP go up and down completely randomly.
Pair Corralation between Media and FOSTOURGRP
Assuming the 90 days trading horizon Media and Games is expected to under-perform the FOSTOURGRP. In addition to that, Media is 1.37 times more volatile than FOSTOURGRP EO 0001. It trades about -0.08 of its total potential returns per unit of risk. FOSTOURGRP EO 0001 is currently generating about 0.21 per unit of volatility. If you would invest 41.00 in FOSTOURGRP EO 0001 on September 3, 2024 and sell it today you would earn a total of 5.00 from holding FOSTOURGRP EO 0001 or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Media and Games vs. FOSTOURGRP EO 0001
Performance |
| Timeline |
| Media and Games |
| FOSTOURGRP EO 0001 |
Media and FOSTOURGRP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and FOSTOURGRP
The main advantage of trading using opposite Media and FOSTOURGRP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media position performs unexpectedly, FOSTOURGRP 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 FOSTOURGRP will offset losses from the drop in FOSTOURGRP's long position.The idea behind Media and Games and FOSTOURGRP EO 0001 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| FOSTOURGRP vs. Thai Beverage Public | FOSTOURGRP vs. Gladstone Investment | FOSTOURGRP vs. MOLSON RS BEVERAGE | FOSTOURGRP vs. REINET INVESTMENTS SCA |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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