Correlation Between Salon Media and IZEA
Can any of the company-specific risk be diversified away by investing in both Salon Media and IZEA 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 Salon Media and IZEA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salon Media Group and IZEA Inc, you can compare the effects of market volatilities on Salon Media and IZEA 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 Salon Media with a short position of IZEA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salon Media and IZEA.
Diversification Opportunities for Salon Media and IZEA
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salon and IZEA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Salon Media Group and IZEA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IZEA Inc and Salon 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 Salon Media Group are associated (or correlated) with IZEA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IZEA Inc has no effect on the direction of Salon Media i.e., Salon Media and IZEA go up and down completely randomly.
Pair Corralation between Salon Media and IZEA
If you would invest 270.00 in IZEA Inc on September 2, 2024 and sell it today you would earn a total of 16.00 from holding IZEA Inc or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Salon Media Group vs. IZEA Inc
Performance |
| Timeline |
| Salon Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IZEA Inc |
Salon Media and IZEA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salon Media and IZEA
The main advantage of trading using opposite Salon Media and IZEA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salon Media position performs unexpectedly, IZEA 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 IZEA will offset losses from the drop in IZEA's long position.| Salon Media vs. IZEA Inc | Salon Media vs. Match Group | Salon Media vs. Zhihu Inc ADR | Salon Media vs. Weibo Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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