Correlation Between Media and Grenke AG
Can any of the company-specific risk be diversified away by investing in both Media and Grenke AG 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 Grenke AG 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 Grenke AG, you can compare the effects of market volatilities on Media and Grenke AG 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 Grenke AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and Grenke AG.
Diversification Opportunities for Media and Grenke AG
Excellent diversification
The 3 months correlation between Media and Grenke is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games and Grenke AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grenke AG 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 Grenke AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grenke AG has no effect on the direction of Media i.e., Media and Grenke AG go up and down completely randomly.
Pair Corralation between Media and Grenke AG
Assuming the 90 days trading horizon Media and Games is expected to generate 1.57 times more return on investment than Grenke AG. However, Media is 1.57 times more volatile than Grenke AG. It trades about 0.05 of its potential returns per unit of risk. Grenke AG is currently generating about 0.0 per unit of risk. If you would invest 171.00 in Media and Games on September 14, 2024 and sell it today you would earn a total of 168.00 from holding Media and Games or generate 98.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Media and Games vs. Grenke AG
Performance |
| Timeline |
| Media and Games |
| Grenke AG |
Media and Grenke AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and Grenke AG
The main advantage of trading using opposite Media and Grenke AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media position performs unexpectedly, Grenke AG 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 Grenke AG will offset losses from the drop in Grenke AG's long position.| Media vs. Superior Plus Corp | Media vs. SIVERS SEMICONDUCTORS AB | Media vs. Norsk Hydro ASA | Media vs. Reliance Steel Aluminum |
| Grenke AG vs. DEVRY EDUCATION GRP | Grenke AG vs. Games Workshop Group | Grenke AG vs. RYU Apparel | Grenke AG vs. Media and Games |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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