Correlation Between North Media and Accunia Inv
Can any of the company-specific risk be diversified away by investing in both North Media and Accunia Inv 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 North Media and Accunia Inv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between North Media AS and Accunia Inv European, you can compare the effects of market volatilities on North Media and Accunia Inv 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 North Media with a short position of Accunia Inv. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Media and Accunia Inv.
Diversification Opportunities for North Media and Accunia Inv
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between North and Accunia is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding North Media AS and Accunia Inv European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accunia Inv European and North Media 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 North Media AS are associated (or correlated) with Accunia Inv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accunia Inv European has no effect on the direction of North Media i.e., North Media and Accunia Inv go up and down completely randomly.
Pair Corralation between North Media and Accunia Inv
Assuming the 90 days trading horizon North Media AS is expected to under-perform the Accunia Inv. In addition to that, North Media is 6.83 times more volatile than Accunia Inv European. It trades about -0.07 of its total potential returns per unit of risk. Accunia Inv European is currently generating about 0.09 per unit of volatility. If you would invest 98,500 in Accunia Inv European on September 3, 2024 and sell it today you would earn a total of 3,360 from holding Accunia Inv European or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
North Media AS vs. Accunia Inv European
Performance |
| Timeline |
| North Media AS |
| Accunia Inv European |
North Media and Accunia Inv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Media and Accunia Inv
The main advantage of trading using opposite North Media and Accunia Inv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Media position performs unexpectedly, Accunia Inv 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 Accunia Inv will offset losses from the drop in Accunia Inv's long position.| North Media vs. Matas AS | North Media vs. cBrain AS | North Media vs. Alm Brand | North Media vs. Netcompany Group AS |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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