Correlation Between Media Investment and Squirrel Media
Can any of the company-specific risk be diversified away by investing in both Media Investment and Squirrel Media 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 Investment and Squirrel Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Media Investment Optimization and Squirrel Media SA, you can compare the effects of market volatilities on Media Investment and Squirrel Media 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 Investment with a short position of Squirrel Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media Investment and Squirrel Media.
Diversification Opportunities for Media Investment and Squirrel Media
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Media and Squirrel is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Media Investment Optimization and Squirrel Media SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Squirrel Media SA and Media Investment 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 Investment Optimization are associated (or correlated) with Squirrel Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Squirrel Media SA has no effect on the direction of Media Investment i.e., Media Investment and Squirrel Media go up and down completely randomly.
Pair Corralation between Media Investment and Squirrel Media
Assuming the 90 days trading horizon Media Investment Optimization is expected to under-perform the Squirrel Media. But the stock apears to be less risky and, when comparing its historical volatility, Media Investment Optimization is 2.31 times less risky than Squirrel Media. The stock trades about -0.32 of its potential returns per unit of risk. The Squirrel Media SA is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 124.00 in Squirrel Media SA on October 26, 2024 and sell it today you would earn a total of 19.00 from holding Squirrel Media SA or generate 15.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Media Investment Optimization vs. Squirrel Media SA
Performance |
| Timeline |
| Media Investment Opt |
| Squirrel Media SA |
Media Investment and Squirrel Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media Investment and Squirrel Media
The main advantage of trading using opposite Media Investment and Squirrel Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media Investment position performs unexpectedly, Squirrel Media 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 Squirrel Media will offset losses from the drop in Squirrel Media's long position.| Media Investment vs. Elaia Investment Spain | Media Investment vs. Cox ABG Group | Media Investment vs. Tier1 Technology SA | Media Investment vs. Ibervalles SOCIMI SA |
| Squirrel Media vs. Home Capital Rentals | Squirrel Media vs. All Iron Re | Squirrel Media vs. International Consolidated Airlines | Squirrel Media vs. Melia Hotels |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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