Correlation Between Wilhelmina and Creative Media
Can any of the company-specific risk be diversified away by investing in both Wilhelmina and Creative 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 Wilhelmina and Creative Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilhelmina and Creative Media Community, you can compare the effects of market volatilities on Wilhelmina and Creative 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 Wilhelmina with a short position of Creative Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilhelmina and Creative Media.
Diversification Opportunities for Wilhelmina and Creative Media
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wilhelmina and Creative is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Wilhelmina and Creative Media Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creative Media Community and Wilhelmina 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 Wilhelmina are associated (or correlated) with Creative Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creative Media Community has no effect on the direction of Wilhelmina i.e., Wilhelmina and Creative Media go up and down completely randomly.
Pair Corralation between Wilhelmina and Creative Media
Given the investment horizon of 90 days Wilhelmina is expected to generate 0.37 times more return on investment than Creative Media. However, Wilhelmina is 2.73 times less risky than Creative Media. It trades about 0.31 of its potential returns per unit of risk. Creative Media Community is currently generating about -0.39 per unit of risk. If you would invest 332.00 in Wilhelmina on August 29, 2024 and sell it today you would earn a total of 67.00 from holding Wilhelmina or generate 20.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilhelmina vs. Creative Media Community
Performance |
| Timeline |
| Wilhelmina |
| Creative Media Community |
Wilhelmina and Creative Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilhelmina and Creative Media
The main advantage of trading using opposite Wilhelmina and Creative Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilhelmina position performs unexpectedly, Creative 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 Creative Media will offset losses from the drop in Creative Media's long position.| Wilhelmina vs. Performant Financial | Wilhelmina vs. Network 1 Technologies | Wilhelmina vs. Rentokil Initial PLC | Wilhelmina vs. Mader Group Limited |
| Creative Media vs. Cousins Properties Incorporated | Creative Media vs. Highwoods Properties | Creative Media vs. Douglas Emmett | Creative Media vs. Equity Commonwealth |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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