Correlation Between Nine Entertainment and Alternative Investment
Can any of the company-specific risk be diversified away by investing in both Nine Entertainment and Alternative Investment 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 Nine Entertainment and Alternative Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nine Entertainment Co and Alternative Investment Trust, you can compare the effects of market volatilities on Nine Entertainment and Alternative Investment 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 Nine Entertainment with a short position of Alternative Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nine Entertainment and Alternative Investment.
Diversification Opportunities for Nine Entertainment and Alternative Investment
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nine and Alternative is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Nine Entertainment Co and Alternative Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alternative Investment and Nine Entertainment 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 Nine Entertainment Co are associated (or correlated) with Alternative Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alternative Investment has no effect on the direction of Nine Entertainment i.e., Nine Entertainment and Alternative Investment go up and down completely randomly.
Pair Corralation between Nine Entertainment and Alternative Investment
Assuming the 90 days trading horizon Nine Entertainment Co is expected to under-perform the Alternative Investment. In addition to that, Nine Entertainment is 1.14 times more volatile than Alternative Investment Trust. It trades about -0.07 of its total potential returns per unit of risk. Alternative Investment Trust is currently generating about 0.06 per unit of volatility. If you would invest 124.00 in Alternative Investment Trust on August 25, 2024 and sell it today you would earn a total of 21.00 from holding Alternative Investment Trust or generate 16.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nine Entertainment Co vs. Alternative Investment Trust
Performance |
| Timeline |
| Nine Entertainment |
| Alternative Investment |
Nine Entertainment and Alternative Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nine Entertainment and Alternative Investment
The main advantage of trading using opposite Nine Entertainment and Alternative Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nine Entertainment position performs unexpectedly, Alternative Investment 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 Alternative Investment will offset losses from the drop in Alternative Investment's long position.| Nine Entertainment vs. Microequities Asset Management | Nine Entertainment vs. DY6 Metals | Nine Entertainment vs. National Storage REIT | Nine Entertainment vs. Hotel Property Investments |
| Alternative Investment vs. National Australia Bank | Alternative Investment vs. National Australia Bank | Alternative Investment vs. Westpac Banking | Alternative Investment vs. National Australia Bank |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |