Correlation Between Video River and NewHold Investment
Can any of the company-specific risk be diversified away by investing in both Video River and NewHold 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 Video River and NewHold Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Video River Networks and NewHold Investment Corp, you can compare the effects of market volatilities on Video River and NewHold 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 Video River with a short position of NewHold Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Video River and NewHold Investment.
Diversification Opportunities for Video River and NewHold Investment
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Video and NewHold is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Video River Networks and NewHold Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewHold Investment Corp and Video River 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 Video River Networks are associated (or correlated) with NewHold Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewHold Investment Corp has no effect on the direction of Video River i.e., Video River and NewHold Investment go up and down completely randomly.
Pair Corralation between Video River and NewHold Investment
Given the investment horizon of 90 days Video River is expected to generate 19.55 times less return on investment than NewHold Investment. But when comparing it to its historical volatility, Video River Networks is 7.94 times less risky than NewHold Investment. It trades about 0.06 of its potential returns per unit of risk. NewHold Investment Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4.50 in NewHold Investment Corp on August 26, 2024 and sell it today you would lose (3.20) from holding NewHold Investment Corp or give up 71.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.25% |
| Values | Daily Returns |
Video River Networks vs. NewHold Investment Corp
Performance |
| Timeline |
| Video River Networks |
| NewHold Investment Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Video River and NewHold Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Video River and NewHold Investment
The main advantage of trading using opposite Video River and NewHold Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Video River position performs unexpectedly, NewHold 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 NewHold Investment will offset losses from the drop in NewHold Investment's long position.| Video River vs. Boxlight Corp Class | Video River vs. Siyata Mobile | Video River vs. ClearOne | Video River vs. HUMANA INC |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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