Correlation Between MoneysupermarketCom and Centaur Media
Can any of the company-specific risk be diversified away by investing in both MoneysupermarketCom and Centaur 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 MoneysupermarketCom and Centaur Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MoneysupermarketCom Group PLC and Centaur Media, you can compare the effects of market volatilities on MoneysupermarketCom and Centaur 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 MoneysupermarketCom with a short position of Centaur Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneysupermarketCom and Centaur Media.
Diversification Opportunities for MoneysupermarketCom and Centaur Media
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MoneysupermarketCom and Centaur is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding MoneysupermarketCom Group PLC and Centaur Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Media and MoneysupermarketCom 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 MoneysupermarketCom Group PLC are associated (or correlated) with Centaur Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Media has no effect on the direction of MoneysupermarketCom i.e., MoneysupermarketCom and Centaur Media go up and down completely randomly.
Pair Corralation between MoneysupermarketCom and Centaur Media
Assuming the 90 days trading horizon MoneysupermarketCom Group PLC is expected to generate 0.73 times more return on investment than Centaur Media. However, MoneysupermarketCom Group PLC is 1.37 times less risky than Centaur Media. It trades about 0.14 of its potential returns per unit of risk. Centaur Media is currently generating about -0.18 per unit of risk. If you would invest 19,070 in MoneysupermarketCom Group PLC on January 30, 2025 and sell it today you would earn a total of 1,110 from holding MoneysupermarketCom Group PLC or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MoneysupermarketCom Group PLC vs. Centaur Media
Performance |
| Timeline |
| MoneysupermarketCom |
| Centaur Media |
MoneysupermarketCom and Centaur Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MoneysupermarketCom and Centaur Media
The main advantage of trading using opposite MoneysupermarketCom and Centaur Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneysupermarketCom position performs unexpectedly, Centaur 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 Centaur Media will offset losses from the drop in Centaur Media's long position.| MoneysupermarketCom vs. Pets at Home | MoneysupermarketCom vs. Capital Drilling | MoneysupermarketCom vs. Trainline Plc | MoneysupermarketCom vs. Charter Communications Cl |
| Centaur Media vs. Made Tech Group | Centaur Media vs. Blackrock World Mining | Centaur Media vs. Playtech Plc | Centaur Media vs. Wheaton Precious Metals |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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