Correlation Between Media and Cogobuy
Can any of the company-specific risk be diversified away by investing in both Media and Cogobuy 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 Cogobuy 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 Cogobuy Group, you can compare the effects of market volatilities on Media and Cogobuy 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 Cogobuy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and Cogobuy.
Diversification Opportunities for Media and Cogobuy
Average diversification
The 3 months correlation between Media and Cogobuy is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games and Cogobuy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogobuy Group 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 Cogobuy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogobuy Group has no effect on the direction of Media i.e., Media and Cogobuy go up and down completely randomly.
Pair Corralation between Media and Cogobuy
Assuming the 90 days trading horizon Media and Games is expected to generate 0.51 times more return on investment than Cogobuy. However, Media and Games is 1.96 times less risky than Cogobuy. It trades about 0.19 of its potential returns per unit of risk. Cogobuy Group is currently generating about 0.05 per unit of risk. If you would invest 162.00 in Media and Games on September 5, 2024 and sell it today you would earn a total of 200.00 from holding Media and Games or generate 123.46% 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. Cogobuy Group
Performance |
| Timeline |
| Media and Games |
| Cogobuy Group |
Media and Cogobuy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and Cogobuy
The main advantage of trading using opposite Media and Cogobuy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media position performs unexpectedly, Cogobuy 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 Cogobuy will offset losses from the drop in Cogobuy's long position.| Media vs. Rocket Internet SE | Media vs. Superior Plus Corp | Media vs. NMI Holdings | Media vs. Origin Agritech |
| Cogobuy vs. Charter Communications | Cogobuy vs. Citic Telecom International | Cogobuy vs. Gamma Communications plc | Cogobuy vs. SCANSOURCE |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
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| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |