Correlation Between Scholastic and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both Scholastic and XLMedia PLC 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 Scholastic and XLMedia PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scholastic and XLMedia PLC, you can compare the effects of market volatilities on Scholastic and XLMedia PLC 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 Scholastic with a short position of XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scholastic and XLMedia PLC.
Diversification Opportunities for Scholastic and XLMedia PLC
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Scholastic and XLMedia is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Scholastic and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC and Scholastic 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 Scholastic are associated (or correlated) with XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of Scholastic i.e., Scholastic and XLMedia PLC go up and down completely randomly.
Pair Corralation between Scholastic and XLMedia PLC
Given the investment horizon of 90 days Scholastic is expected to generate 2.46 times less return on investment than XLMedia PLC. But when comparing it to its historical volatility, Scholastic is 1.65 times less risky than XLMedia PLC. It trades about 0.1 of its potential returns per unit of risk. XLMedia PLC is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 15.00 in XLMedia PLC on August 30, 2024 and sell it today you would earn a total of 2.00 from holding XLMedia PLC or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scholastic vs. XLMedia PLC
Performance |
| Timeline |
| Scholastic |
| XLMedia PLC |
Scholastic and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scholastic and XLMedia PLC
The main advantage of trading using opposite Scholastic and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scholastic position performs unexpectedly, XLMedia PLC 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.| Scholastic vs. New York Times | Scholastic vs. Gannett Co | Scholastic vs. Lee Enterprises Incorporated | Scholastic vs. Pearson PLC ADR |
| XLMedia PLC vs. FP Newspapers | XLMedia PLC vs. RCS MediaGroup SpA | XLMedia PLC vs. Scholastic | XLMedia PLC vs. Lee Enterprises Incorporated |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Positions Ratings 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 |