Correlation Between Vivendi SE and News
Can any of the company-specific risk be diversified away by investing in both Vivendi SE and News 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 Vivendi SE and News into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivendi SE and News Corporation, you can compare the effects of market volatilities on Vivendi SE and News 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 Vivendi SE with a short position of News. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivendi SE and News.
Diversification Opportunities for Vivendi SE and News
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vivendi and News is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Vivendi SE and News Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on News and Vivendi SE 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 Vivendi SE are associated (or correlated) with News. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of News has no effect on the direction of Vivendi SE i.e., Vivendi SE and News go up and down completely randomly.
Pair Corralation between Vivendi SE and News
Assuming the 90 days horizon Vivendi SE is expected to generate 10.01 times less return on investment than News. But when comparing it to its historical volatility, Vivendi SE is 1.24 times less risky than News. It trades about 0.01 of its potential returns per unit of risk. News Corporation is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,657 in News Corporation on September 3, 2024 and sell it today you would earn a total of 1,103 from holding News Corporation or generate 66.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivendi SE vs. News Corp.
Performance |
| Timeline |
| Vivendi SE |
| News |
Vivendi SE and News Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivendi SE and News
The main advantage of trading using opposite Vivendi SE and News positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivendi SE position performs unexpectedly, News 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 News will offset losses from the drop in News' long position.| Vivendi SE vs. Sumitomo Rubber Industries | Vivendi SE vs. RCM TECHNOLOGIES | Vivendi SE vs. THRACE PLASTICS | Vivendi SE vs. GOODYEAR T RUBBER |
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 CEOs Directory module to screen CEOs from public companies around the world.
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