Correlation Between SOCKET MOBILE and SQUIRREL MEDIA
Can any of the company-specific risk be diversified away by investing in both SOCKET MOBILE and SQUIRREL 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 SOCKET MOBILE and SQUIRREL MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOCKET MOBILE NEW and SQUIRREL MEDIA SA, you can compare the effects of market volatilities on SOCKET MOBILE and SQUIRREL 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 SOCKET MOBILE with a short position of SQUIRREL MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOCKET MOBILE and SQUIRREL MEDIA.
Diversification Opportunities for SOCKET MOBILE and SQUIRREL MEDIA
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SOCKET and SQUIRREL is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding SOCKET MOBILE NEW and SQUIRREL MEDIA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQUIRREL MEDIA SA and SOCKET MOBILE 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 SOCKET MOBILE NEW are associated (or correlated) with SQUIRREL MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQUIRREL MEDIA SA has no effect on the direction of SOCKET MOBILE i.e., SOCKET MOBILE and SQUIRREL MEDIA go up and down completely randomly.
Pair Corralation between SOCKET MOBILE and SQUIRREL MEDIA
Assuming the 90 days trading horizon SOCKET MOBILE is expected to generate 1.28 times less return on investment than SQUIRREL MEDIA. In addition to that, SOCKET MOBILE is 1.48 times more volatile than SQUIRREL MEDIA SA. It trades about 0.14 of its total potential returns per unit of risk. SQUIRREL MEDIA SA is currently generating about 0.27 per unit of volatility. If you would invest 122.00 in SQUIRREL MEDIA SA on October 12, 2024 and sell it today you would earn a total of 14.00 from holding SQUIRREL MEDIA SA or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOCKET MOBILE NEW vs. SQUIRREL MEDIA SA
Performance |
| Timeline |
| SOCKET MOBILE NEW |
| SQUIRREL MEDIA SA |
SOCKET MOBILE and SQUIRREL MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOCKET MOBILE and SQUIRREL MEDIA
The main advantage of trading using opposite SOCKET MOBILE and SQUIRREL MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOCKET MOBILE position performs unexpectedly, SQUIRREL 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 SQUIRREL MEDIA will offset losses from the drop in SQUIRREL MEDIA's long position.| SOCKET MOBILE vs. MACOM Technology Solutions | SOCKET MOBILE vs. Nordic Semiconductor ASA | SOCKET MOBILE vs. MUTUIONLINE | SOCKET MOBILE vs. PACIFIC ONLINE |
| SQUIRREL MEDIA vs. MOVIE GAMES SA | SQUIRREL MEDIA vs. DETALION GAMES SA | SQUIRREL MEDIA vs. SOCKET MOBILE NEW | SQUIRREL MEDIA vs. BRAGG GAMING GRP |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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