Correlation Between Universal Media and Celtic Plc
Can any of the company-specific risk be diversified away by investing in both Universal Media and Celtic 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 Universal Media and Celtic Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Media Group and Celtic plc, you can compare the effects of market volatilities on Universal Media and Celtic 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 Universal Media with a short position of Celtic Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Media and Celtic Plc.
Diversification Opportunities for Universal Media and Celtic Plc
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Universal and Celtic is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Universal Media Group and Celtic plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celtic plc and Universal 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 Universal Media Group are associated (or correlated) with Celtic Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celtic plc has no effect on the direction of Universal Media i.e., Universal Media and Celtic Plc go up and down completely randomly.
Pair Corralation between Universal Media and Celtic Plc
Given the investment horizon of 90 days Universal Media Group is expected to generate 3.61 times more return on investment than Celtic Plc. However, Universal Media is 3.61 times more volatile than Celtic plc. It trades about 0.02 of its potential returns per unit of risk. Celtic plc is currently generating about 0.06 per unit of risk. If you would invest 14.00 in Universal Media Group on November 4, 2024 and sell it today you would lose (10.70) from holding Universal Media Group or give up 76.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Universal Media Group vs. Celtic plc
Performance |
| Timeline |
| Universal Media Group |
| Celtic plc |
Universal Media and Celtic Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Media and Celtic Plc
The main advantage of trading using opposite Universal Media and Celtic Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Media position performs unexpectedly, Celtic 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 Celtic Plc will offset losses from the drop in Celtic Plc's long position.| Universal Media vs. Precision Drilling | Universal Media vs. Borr Drilling | Universal Media vs. Ralph Lauren Corp | Universal Media vs. Sable Offshore Corp |
| Celtic Plc vs. Guild Esports Plc | Celtic Plc vs. Network Media Group | Celtic Plc vs. OverActive Media Corp | Celtic Plc vs. New Wave Holdings |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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