Correlation Between News and Vivendi SE
Can any of the company-specific risk be diversified away by investing in both News and Vivendi SE 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 News and Vivendi SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between News Corporation and Vivendi SE, you can compare the effects of market volatilities on News and Vivendi SE 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 News with a short position of Vivendi SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of News and Vivendi SE.
Diversification Opportunities for News and Vivendi SE
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between News and Vivendi is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding News Corp. and Vivendi SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivendi SE and News 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 News Corporation are associated (or correlated) with Vivendi SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivendi SE has no effect on the direction of News i.e., News and Vivendi SE go up and down completely randomly.
Pair Corralation between News and Vivendi SE
Assuming the 90 days horizon News Corporation is expected to generate 1.02 times more return on investment than Vivendi SE. However, News is 1.02 times more volatile than Vivendi SE. It trades about 0.31 of its potential returns per unit of risk. Vivendi SE is currently generating about -0.34 per unit of risk. If you would invest 2,480 in News Corporation on September 1, 2024 and sell it today you would earn a total of 280.00 from holding News Corporation or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
News Corp. vs. Vivendi SE
Performance |
| Timeline |
| News |
| Vivendi SE |
News and Vivendi SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with News and Vivendi SE
The main advantage of trading using opposite News and Vivendi SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News position performs unexpectedly, Vivendi SE 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 Vivendi SE will offset losses from the drop in Vivendi SE's long position.| News vs. Superior Plus Corp | News vs. NMI Holdings | News vs. Origin Agritech | News vs. SIVERS SEMICONDUCTORS AB |
| Vivendi SE vs. Guidewire Software | Vivendi SE vs. AXWAY SOFTWARE EO | Vivendi SE vs. AEGEAN AIRLINES | Vivendi SE vs. Carsales |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |