Correlation Between PAX Global and Here Media
Can any of the company-specific risk be diversified away by investing in both PAX Global and Here Media 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 PAX Global and Here Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PAX Global Technology and Here Media, you can compare the effects of market volatilities on PAX Global and Here Media 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 PAX Global with a short position of Here Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of PAX Global and Here Media.
Diversification Opportunities for PAX Global and Here Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PAX and Here is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PAX Global Technology and Here Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Here Media and PAX Global 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 PAX Global Technology are associated (or correlated) with Here Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Here Media has no effect on the direction of PAX Global i.e., PAX Global and Here Media go up and down completely randomly.
Pair Corralation between PAX Global and Here Media
If you would invest 31.00 in PAX Global Technology on September 3, 2024 and sell it today you would earn a total of 30.00 from holding PAX Global Technology or generate 96.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 92.52% |
| Values | Daily Returns |
PAX Global Technology vs. Here Media
Performance |
| Timeline |
| PAX Global Technology |
| Here Media |
PAX Global and Here Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PAX Global and Here Media
The main advantage of trading using opposite PAX Global and Here Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PAX Global position performs unexpectedly, Here Media 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 Here Media will offset losses from the drop in Here Media's long position.The idea behind PAX Global Technology and Here Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Here Media vs. Legible | Here Media vs. Sylvania Platinum Limited | Here Media vs. Thunderbird Entertainment Group | Here Media vs. PAX Global Technology |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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