Correlation Between Strer SE and CLEAR CHANNEL
Can any of the company-specific risk be diversified away by investing in both Strer SE and CLEAR CHANNEL 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 Strer SE and CLEAR CHANNEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strer SE Co and CLEAR CHANNEL OHA, you can compare the effects of market volatilities on Strer SE and CLEAR CHANNEL 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 Strer SE with a short position of CLEAR CHANNEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strer SE and CLEAR CHANNEL.
Diversification Opportunities for Strer SE and CLEAR CHANNEL
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Strer and CLEAR is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Strer SE Co and CLEAR CHANNEL OHA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLEAR CHANNEL OHA and Strer SE 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 Strer SE Co are associated (or correlated) with CLEAR CHANNEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLEAR CHANNEL OHA has no effect on the direction of Strer SE i.e., Strer SE and CLEAR CHANNEL go up and down completely randomly.
Pair Corralation between Strer SE and CLEAR CHANNEL
Assuming the 90 days trading horizon Strer SE is expected to generate 2.89 times less return on investment than CLEAR CHANNEL. But when comparing it to its historical volatility, Strer SE Co is 2.74 times less risky than CLEAR CHANNEL. It trades about 0.03 of its potential returns per unit of risk. CLEAR CHANNEL OHA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 98.00 in CLEAR CHANNEL OHA on September 20, 2024 and sell it today you would earn a total of 34.00 from holding CLEAR CHANNEL OHA or generate 34.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strer SE Co vs. CLEAR CHANNEL OHA
Performance |
| Timeline |
| Strer SE |
| CLEAR CHANNEL OHA |
Strer SE and CLEAR CHANNEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strer SE and CLEAR CHANNEL
The main advantage of trading using opposite Strer SE and CLEAR CHANNEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strer SE position performs unexpectedly, CLEAR CHANNEL 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 CLEAR CHANNEL will offset losses from the drop in CLEAR CHANNEL's long position.| Strer SE vs. Superior Plus Corp | Strer SE vs. SIVERS SEMICONDUCTORS AB | Strer SE vs. NorAm Drilling AS | Strer SE vs. Norsk Hydro ASA |
| CLEAR CHANNEL vs. Carsales | CLEAR CHANNEL vs. Park Hotels Resorts | CLEAR CHANNEL vs. CARSALESCOM | CLEAR CHANNEL vs. MIRAMAR HOTEL INV |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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