Correlation Between Media and CK Infrastructure
Can any of the company-specific risk be diversified away by investing in both Media and CK Infrastructure 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 CK Infrastructure 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 CK Infrastructure Holdings, you can compare the effects of market volatilities on Media and CK Infrastructure 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 CK Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and CK Infrastructure.
Diversification Opportunities for Media and CK Infrastructure
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Media and CHH is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games and CK Infrastructure Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Infrastructure 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 CK Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Infrastructure has no effect on the direction of Media i.e., Media and CK Infrastructure go up and down completely randomly.
Pair Corralation between Media and CK Infrastructure
Assuming the 90 days trading horizon Media and Games is expected to under-perform the CK Infrastructure. In addition to that, Media is 1.99 times more volatile than CK Infrastructure Holdings. It trades about -0.09 of its total potential returns per unit of risk. CK Infrastructure Holdings is currently generating about -0.04 per unit of volatility. If you would invest 641.00 in CK Infrastructure Holdings on September 13, 2024 and sell it today you would lose (13.00) from holding CK Infrastructure Holdings or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Media and Games vs. CK Infrastructure Holdings
Performance |
| Timeline |
| Media and Games |
| CK Infrastructure |
Media and CK Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and CK Infrastructure
The main advantage of trading using opposite Media and CK Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media position performs unexpectedly, CK Infrastructure 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 CK Infrastructure will offset losses from the drop in CK Infrastructure's long position.| Media vs. BOS BETTER ONLINE | Media vs. North American Construction | Media vs. YATRA ONLINE DL 0001 | Media vs. MINCO SILVER |
| CK Infrastructure vs. INDO RAMA SYNTHETIC | CK Infrastructure vs. STMICROELECTRONICS | CK Infrastructure vs. Eastman Chemical | CK Infrastructure vs. Arrow Electronics |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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