Correlation Between Manchester United and IQIYI
Can any of the company-specific risk be diversified away by investing in both Manchester United and IQIYI 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 Manchester United and IQIYI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manchester United and iQIYI Inc, you can compare the effects of market volatilities on Manchester United and IQIYI 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 Manchester United with a short position of IQIYI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manchester United and IQIYI.
Diversification Opportunities for Manchester United and IQIYI
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manchester and IQIYI is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Manchester United and iQIYI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iQIYI Inc and Manchester United 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 Manchester United are associated (or correlated) with IQIYI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iQIYI Inc has no effect on the direction of Manchester United i.e., Manchester United and IQIYI go up and down completely randomly.
Pair Corralation between Manchester United and IQIYI
Given the investment horizon of 90 days Manchester United is expected to generate 0.47 times more return on investment than IQIYI. However, Manchester United is 2.14 times less risky than IQIYI. It trades about 0.16 of its potential returns per unit of risk. iQIYI Inc is currently generating about -0.23 per unit of risk. If you would invest 1,596 in Manchester United on August 31, 2024 and sell it today you would earn a total of 107.00 from holding Manchester United or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manchester United vs. iQIYI Inc
Performance |
| Timeline |
| Manchester United |
| iQIYI Inc |
Manchester United and IQIYI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manchester United and IQIYI
The main advantage of trading using opposite Manchester United and IQIYI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manchester United position performs unexpectedly, IQIYI 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 IQIYI will offset losses from the drop in IQIYI's long position.| Manchester United vs. Roku Inc | Manchester United vs. AMC Entertainment Holdings | Manchester United vs. Paramount Global Class | Manchester United vs. Warner Bros Discovery |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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