Correlation Between World Wrestling and Fox Corp
Can any of the company-specific risk be diversified away by investing in both World Wrestling and Fox Corp 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 World Wrestling and Fox Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between World Wrestling Entertainment and Fox Corp Class, you can compare the effects of market volatilities on World Wrestling and Fox Corp 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 World Wrestling with a short position of Fox Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of World Wrestling and Fox Corp.
Diversification Opportunities for World Wrestling and Fox Corp
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between World and Fox is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding World Wrestling Entertainment and Fox Corp Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fox Corp Class and World Wrestling 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 World Wrestling Entertainment are associated (or correlated) with Fox Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fox Corp Class has no effect on the direction of World Wrestling i.e., World Wrestling and Fox Corp go up and down completely randomly.
Pair Corralation between World Wrestling and Fox Corp
Considering the 90-day investment horizon World Wrestling Entertainment is expected to generate 0.99 times more return on investment than Fox Corp. However, World Wrestling Entertainment is 1.01 times less risky than Fox Corp. It trades about 0.14 of its potential returns per unit of risk. Fox Corp Class is currently generating about 0.09 per unit of risk. If you would invest 10,010 in World Wrestling Entertainment on August 27, 2024 and sell it today you would earn a total of 632.00 from holding World Wrestling Entertainment or generate 6.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 9.38% |
| Values | Daily Returns |
World Wrestling Entertainment vs. Fox Corp Class
Performance |
| Timeline |
| World Wrestling Ente |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fox Corp Class |
World Wrestling and Fox Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with World Wrestling and Fox Corp
The main advantage of trading using opposite World Wrestling and Fox Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if World Wrestling position performs unexpectedly, Fox Corp 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 Fox Corp will offset losses from the drop in Fox Corp's long position.| World Wrestling vs. Liberty Media | World Wrestling vs. Live Nation Entertainment | World Wrestling vs. Madison Square Garden | World Wrestling vs. Warner Music Group |
| Fox Corp vs. News Corp A | Fox Corp vs. News Corp B | Fox Corp vs. Paramount Global Class | Fox Corp vs. Liberty Media |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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