Correlation Between Universal Media and Genius Brands
Can any of the company-specific risk be diversified away by investing in both Universal Media and Genius Brands 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 Genius Brands 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 Genius Brands International, you can compare the effects of market volatilities on Universal Media and Genius Brands 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 Genius Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Media and Genius Brands.
Diversification Opportunities for Universal Media and Genius Brands
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Universal and Genius is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Universal Media Group and Genius Brands International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genius Brands Intern 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 Genius Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genius Brands Intern has no effect on the direction of Universal Media i.e., Universal Media and Genius Brands go up and down completely randomly.
Pair Corralation between Universal Media and Genius Brands
If you would invest 2.20 in Universal Media Group on August 26, 2024 and sell it today you would earn a total of 1.25 from holding Universal Media Group or generate 56.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Universal Media Group vs. Genius Brands International
Performance |
| Timeline |
| Universal Media Group |
| Genius Brands Intern |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Universal Media and Genius Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Media and Genius Brands
The main advantage of trading using opposite Universal Media and Genius Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Media position performs unexpectedly, Genius Brands 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 Genius Brands will offset losses from the drop in Genius Brands' long position.| Universal Media vs. Bt Brands | Universal Media vs. Chipotle Mexican Grill | Universal Media vs. The Wendys Co | Universal Media vs. Delta Air Lines |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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