Correlation Between Mirriad Advertising and Clear Channel
Can any of the company-specific risk be diversified away by investing in both Mirriad Advertising and Clear Channel 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 Mirriad Advertising and Clear Channel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirriad Advertising plc and Clear Channel Outdoor, you can compare the effects of market volatilities on Mirriad Advertising and Clear Channel 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 Mirriad Advertising with a short position of Clear Channel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirriad Advertising and Clear Channel.
Diversification Opportunities for Mirriad Advertising and Clear Channel
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mirriad and Clear is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Mirriad Advertising plc and Clear Channel Outdoor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Channel Outdoor and Mirriad Advertising 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 Mirriad Advertising plc are associated (or correlated) with Clear Channel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Channel Outdoor has no effect on the direction of Mirriad Advertising i.e., Mirriad Advertising and Clear Channel go up and down completely randomly.
Pair Corralation between Mirriad Advertising and Clear Channel
Assuming the 90 days horizon Mirriad Advertising plc is expected to under-perform the Clear Channel. In addition to that, Mirriad Advertising is 3.18 times more volatile than Clear Channel Outdoor. It trades about -0.21 of its total potential returns per unit of risk. Clear Channel Outdoor is currently generating about -0.02 per unit of volatility. If you would invest 159.00 in Clear Channel Outdoor on August 24, 2024 and sell it today you would lose (3.50) from holding Clear Channel Outdoor or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mirriad Advertising plc vs. Clear Channel Outdoor
Performance |
| Timeline |
| Mirriad Advertising plc |
| Clear Channel Outdoor |
Mirriad Advertising and Clear Channel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirriad Advertising and Clear Channel
The main advantage of trading using opposite Mirriad Advertising and Clear Channel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirriad Advertising position performs unexpectedly, Clear Channel 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 Clear Channel will offset losses from the drop in Clear Channel's long position.| Mirriad Advertising vs. INEO Tech Corp | Mirriad Advertising vs. Kidoz Inc | Mirriad Advertising vs. Marchex | Mirriad Advertising vs. Snipp Interactive |
| Clear Channel vs. National CineMedia | Clear Channel vs. Baosheng Media Group | Clear Channel vs. Townsquare Media | Clear Channel vs. Dolphin Entertainment |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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