Correlation Between XLMedia PLC and Autins Group
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and Autins Group 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 Autins Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and Autins Group plc, you can compare the effects of market volatilities on XLMedia PLC and Autins Group 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 Autins Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and Autins Group.
Diversification Opportunities for XLMedia PLC and Autins Group
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between XLMedia and Autins is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and Autins Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autins Group plc 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 Autins Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autins Group plc has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and Autins Group go up and down completely randomly.
Pair Corralation between XLMedia PLC and Autins Group
Assuming the 90 days trading horizon XLMedia PLC is expected to generate 2.08 times more return on investment than Autins Group. However, XLMedia PLC is 2.08 times more volatile than Autins Group plc. It trades about 0.01 of its potential returns per unit of risk. Autins Group plc is currently generating about 0.0 per unit of risk. If you would invest 1,725 in XLMedia PLC on September 3, 2024 and sell it today you would lose (535.00) from holding XLMedia PLC or give up 31.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XLMedia PLC vs. Autins Group plc
Performance |
| Timeline |
| XLMedia PLC |
| Autins Group plc |
XLMedia PLC and Autins Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and Autins Group
The main advantage of trading using opposite XLMedia PLC and Autins Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, Autins Group 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 Autins Group will offset losses from the drop in Autins Group's long position.| XLMedia PLC vs. Intuitive Investments Group | XLMedia PLC vs. European Metals Holdings | XLMedia PLC vs. Athelney Trust plc | XLMedia PLC vs. Invesco Health Care |
| Autins Group vs. Universal Health Services | Autins Group vs. Spire Healthcare Group | Autins Group vs. Fevertree Drinks Plc | Autins Group vs. MyHealthChecked Plc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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