Correlation Between Mirriad Advertising and Insignia Systems
Can any of the company-specific risk be diversified away by investing in both Mirriad Advertising and Insignia Systems 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 Insignia Systems 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 Insignia Systems, you can compare the effects of market volatilities on Mirriad Advertising and Insignia Systems 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 Insignia Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirriad Advertising and Insignia Systems.
Diversification Opportunities for Mirriad Advertising and Insignia Systems
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mirriad and Insignia is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Mirriad Advertising plc and Insignia Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insignia Systems 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 Insignia Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insignia Systems has no effect on the direction of Mirriad Advertising i.e., Mirriad Advertising and Insignia Systems go up and down completely randomly.
Pair Corralation between Mirriad Advertising and Insignia Systems
If you would invest 774.00 in Insignia Systems on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Insignia Systems or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Mirriad Advertising plc vs. Insignia Systems
Performance |
| Timeline |
| Mirriad Advertising plc |
| Insignia Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mirriad Advertising and Insignia Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirriad Advertising and Insignia Systems
The main advantage of trading using opposite Mirriad Advertising and Insignia Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirriad Advertising position performs unexpectedly, Insignia Systems 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 Insignia Systems will offset losses from the drop in Insignia Systems' long position.| Mirriad Advertising vs. Beyond Commerce | Mirriad Advertising vs. Baosheng Media Group | Mirriad Advertising vs. MGO Global Common | Mirriad Advertising vs. CMG Holdings Group |
| Insignia Systems vs. Steel Connect | Insignia Systems vs. Baosheng Media Group | Insignia Systems vs. Impact Fusion International | Insignia Systems vs. Clubhouse Media Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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