Correlation Between Squirrel Media and Media Investment
Can any of the company-specific risk be diversified away by investing in both Squirrel Media and Media Investment 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 Squirrel Media and Media Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Squirrel Media SA and Media Investment Optimization, you can compare the effects of market volatilities on Squirrel Media and Media Investment 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 Squirrel Media with a short position of Media Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Squirrel Media and Media Investment.
Diversification Opportunities for Squirrel Media and Media Investment
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Squirrel and Media is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Squirrel Media SA and Media Investment Optimization in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Investment Opt and Squirrel 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 Squirrel Media SA are associated (or correlated) with Media Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Investment Opt has no effect on the direction of Squirrel Media i.e., Squirrel Media and Media Investment go up and down completely randomly.
Pair Corralation between Squirrel Media and Media Investment
Assuming the 90 days trading horizon Squirrel Media SA is expected to generate 5.55 times more return on investment than Media Investment. However, Squirrel Media is 5.55 times more volatile than Media Investment Optimization. It trades about 0.24 of its potential returns per unit of risk. Media Investment Optimization is currently generating about -0.24 per unit of risk. If you would invest 123.00 in Squirrel Media SA on November 30, 2024 and sell it today you would earn a total of 85.00 from holding Squirrel Media SA or generate 69.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Squirrel Media SA vs. Media Investment Optimization
Performance |
| Timeline |
| Squirrel Media SA |
| Media Investment Opt |
Squirrel Media and Media Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Squirrel Media and Media Investment
The main advantage of trading using opposite Squirrel Media and Media Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Squirrel Media position performs unexpectedly, Media Investment 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 Media Investment will offset losses from the drop in Media Investment's long position.| Squirrel Media vs. Techo Hogar SOCIMI, | Squirrel Media vs. Elaia Investment Spain | Squirrel Media vs. Media Investment Optimization | Squirrel Media vs. Atom Hoteles Socimi |
| Media Investment vs. Vytrus Biotech SA | Media Investment vs. Naturhouse Health SA | Media Investment vs. Home Capital Rentals | Media Investment vs. NH Hoteles |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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