Correlation Between Mirriad Advertising and VS Media
Can any of the company-specific risk be diversified away by investing in both Mirriad Advertising and VS 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 Mirriad Advertising and VS Media 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 VS Media Holdings, you can compare the effects of market volatilities on Mirriad Advertising and VS 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 Mirriad Advertising with a short position of VS Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirriad Advertising and VS Media.
Diversification Opportunities for Mirriad Advertising and VS Media
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mirriad and VSME is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mirriad Advertising plc and VS Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VS Media Holdings 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 VS Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VS Media Holdings has no effect on the direction of Mirriad Advertising i.e., Mirriad Advertising and VS Media go up and down completely randomly.
Pair Corralation between Mirriad Advertising and VS Media
Assuming the 90 days horizon Mirriad Advertising plc is expected to generate 0.6 times more return on investment than VS Media. However, Mirriad Advertising plc is 1.66 times less risky than VS Media. It trades about -0.02 of its potential returns per unit of risk. VS Media Holdings is currently generating about -0.03 per unit of risk. If you would invest 2.50 in Mirriad Advertising plc on September 2, 2024 and sell it today you would lose (2.18) from holding Mirriad Advertising plc or give up 87.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.89% |
| Values | Daily Returns |
Mirriad Advertising plc vs. VS Media Holdings
Performance |
| Timeline |
| Mirriad Advertising plc |
| VS Media Holdings |
Mirriad Advertising and VS Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirriad Advertising and VS Media
The main advantage of trading using opposite Mirriad Advertising and VS Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirriad Advertising position performs unexpectedly, VS 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 VS Media will offset losses from the drop in VS Media's 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 |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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