Correlation Between One Media and Greenroc Mining
Can any of the company-specific risk be diversified away by investing in both One Media and Greenroc Mining 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 Greenroc Mining 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 Greenroc Mining PLC, you can compare the effects of market volatilities on One Media and Greenroc Mining 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 Greenroc Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Media and Greenroc Mining.
Diversification Opportunities for One Media and Greenroc Mining
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between One and Greenroc is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding One Media iP and Greenroc Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenroc Mining PLC 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 Greenroc Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenroc Mining PLC has no effect on the direction of One Media i.e., One Media and Greenroc Mining go up and down completely randomly.
Pair Corralation between One Media and Greenroc Mining
Assuming the 90 days trading horizon One Media is expected to generate 14.03 times less return on investment than Greenroc Mining. But when comparing it to its historical volatility, One Media iP is 1.87 times less risky than Greenroc Mining. It trades about 0.01 of its potential returns per unit of risk. Greenroc Mining PLC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 135.00 in Greenroc Mining PLC on September 2, 2024 and sell it today you would earn a total of 25.00 from holding Greenroc Mining PLC or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Media iP vs. Greenroc Mining PLC
Performance |
| Timeline |
| One Media iP |
| Greenroc Mining PLC |
One Media and Greenroc Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Media and Greenroc Mining
The main advantage of trading using opposite One Media and Greenroc Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Media position performs unexpectedly, Greenroc Mining 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 Greenroc Mining will offset losses from the drop in Greenroc Mining's long position.| One Media vs. Samsung Electronics Co | One Media vs. Samsung Electronics Co | One Media vs. Hyundai Motor | One Media vs. Toyota Motor Corp |
| Greenroc Mining vs. Associated British Foods | Greenroc Mining vs. Monster Beverage Corp | Greenroc Mining vs. Premier Foods PLC | Greenroc Mining vs. X FAB Silicon Foundries |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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