Correlation Between North Media and Matas AS
Can any of the company-specific risk be diversified away by investing in both North Media and Matas AS 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 Matas AS 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 Matas AS, you can compare the effects of market volatilities on North Media and Matas AS 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 Matas AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Media and Matas AS.
Diversification Opportunities for North Media and Matas AS
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between North and Matas is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding North Media AS and Matas AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matas AS 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 Matas AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matas AS has no effect on the direction of North Media i.e., North Media and Matas AS go up and down completely randomly.
Pair Corralation between North Media and Matas AS
Assuming the 90 days trading horizon North Media AS is expected to under-perform the Matas AS. In addition to that, North Media is 1.1 times more volatile than Matas AS. It trades about -0.02 of its total potential returns per unit of risk. Matas AS is currently generating about 0.08 per unit of volatility. If you would invest 9,060 in Matas AS on August 25, 2024 and sell it today you would earn a total of 3,240 from holding Matas AS or generate 35.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Media AS vs. Matas AS
Performance |
| Timeline |
| North Media AS |
| Matas AS |
North Media and Matas AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Media and Matas AS
The main advantage of trading using opposite North Media and Matas AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Media position performs unexpectedly, Matas AS 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 Matas AS will offset losses from the drop in Matas AS's long position.| North Media vs. Matas AS | North Media vs. cBrain AS | North Media vs. Alm Brand | North Media vs. Netcompany Group AS |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |