Correlation Between One Media and Atresmedia
Can any of the company-specific risk be diversified away by investing in both One Media and Atresmedia 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 One Media and Atresmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Media iP and Atresmedia, you can compare the effects of market volatilities on One Media and Atresmedia 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 One Media with a short position of Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Media and Atresmedia.
Diversification Opportunities for One Media and Atresmedia
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between One and Atresmedia is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding One Media iP and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia and One 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 One Media iP are associated (or correlated) with Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of One Media i.e., One Media and Atresmedia go up and down completely randomly.
Pair Corralation between One Media and Atresmedia
Assuming the 90 days trading horizon One Media iP is expected to generate 1.56 times more return on investment than Atresmedia. However, One Media is 1.56 times more volatile than Atresmedia. It trades about 0.21 of its potential returns per unit of risk. Atresmedia is currently generating about -0.08 per unit of risk. If you would invest 425.00 in One Media iP on November 3, 2024 and sell it today you would earn a total of 25.00 from holding One Media iP or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Media iP vs. Atresmedia
Performance |
| Timeline |
| One Media iP |
| Atresmedia |
One Media and Atresmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Media and Atresmedia
The main advantage of trading using opposite One Media and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Media position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia's long position.| One Media vs. Omega Healthcare Investors | One Media vs. Ashtead Technology Holdings | One Media vs. Solstad Offshore ASA | One Media vs. Worldwide Healthcare Trust |
| Atresmedia vs. European Metals Holdings | Atresmedia vs. Silvercorp Metals | Atresmedia vs. Europa Metals | Atresmedia vs. Gear4music Plc |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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