Correlation Between XLMedia PLC and Hershey
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and Hershey 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 XLMedia PLC and Hershey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and Hershey Co, you can compare the effects of market volatilities on XLMedia PLC and Hershey 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 XLMedia PLC with a short position of Hershey. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and Hershey.
Diversification Opportunities for XLMedia PLC and Hershey
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XLMedia and Hershey is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and Hershey Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hershey and XLMedia PLC 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 XLMedia PLC are associated (or correlated) with Hershey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hershey has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and Hershey go up and down completely randomly.
Pair Corralation between XLMedia PLC and Hershey
Assuming the 90 days trading horizon XLMedia PLC is expected to under-perform the Hershey. In addition to that, XLMedia PLC is 1.5 times more volatile than Hershey Co. It trades about -0.23 of its total potential returns per unit of risk. Hershey Co is currently generating about -0.03 per unit of volatility. If you would invest 17,633 in Hershey Co on September 26, 2024 and sell it today you would lose (597.00) from holding Hershey Co or give up 3.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XLMedia PLC vs. Hershey Co
Performance |
| Timeline |
| XLMedia PLC |
| Hershey |
XLMedia PLC and Hershey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and Hershey
The main advantage of trading using opposite XLMedia PLC and Hershey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, Hershey 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 Hershey will offset losses from the drop in Hershey's long position.| XLMedia PLC vs. Electronic Arts | XLMedia PLC vs. GoldMining | XLMedia PLC vs. Arrow Electronics | XLMedia PLC vs. Empire Metals Limited |
| Hershey vs. XLMedia PLC | Hershey vs. MediaZest plc | Hershey vs. Zinc Media Group | Hershey vs. Nordic Semiconductor ASA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |