Correlation Between Media and SVENSKA CELLULO
Can any of the company-specific risk be diversified away by investing in both Media and SVENSKA CELLULO 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 SVENSKA CELLULO 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 SVENSKA CELLULO B , you can compare the effects of market volatilities on Media and SVENSKA CELLULO 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 SVENSKA CELLULO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and SVENSKA CELLULO.
Diversification Opportunities for Media and SVENSKA CELLULO
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Media and SVENSKA is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games and SVENSKA CELLULO B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVENSKA CELLULO B 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 SVENSKA CELLULO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVENSKA CELLULO B has no effect on the direction of Media i.e., Media and SVENSKA CELLULO go up and down completely randomly.
Pair Corralation between Media and SVENSKA CELLULO
Assuming the 90 days trading horizon Media and Games is expected to generate 1.72 times more return on investment than SVENSKA CELLULO. However, Media is 1.72 times more volatile than SVENSKA CELLULO B . It trades about 0.05 of its potential returns per unit of risk. SVENSKA CELLULO B is currently generating about 0.05 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 | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Media and Games vs. SVENSKA CELLULO B
Performance |
| Timeline |
| Media and Games |
| SVENSKA CELLULO B |
Media and SVENSKA CELLULO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and SVENSKA CELLULO
The main advantage of trading using opposite Media and SVENSKA CELLULO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media position performs unexpectedly, SVENSKA CELLULO 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 SVENSKA CELLULO will offset losses from the drop in SVENSKA CELLULO's long position.| Media vs. Superior Plus Corp | Media vs. SIVERS SEMICONDUCTORS AB | Media vs. Norsk Hydro ASA | Media vs. Reliance Steel Aluminum |
| SVENSKA CELLULO vs. Media and Games | SVENSKA CELLULO vs. WisdomTree Investments | SVENSKA CELLULO vs. Apollo Investment Corp | SVENSKA CELLULO vs. International Game Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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