Correlation Between XLMedia PLC and FP Newspapers
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and FP Newspapers 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 FP Newspapers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and FP Newspapers, you can compare the effects of market volatilities on XLMedia PLC and FP Newspapers 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 FP Newspapers. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and FP Newspapers.
Diversification Opportunities for XLMedia PLC and FP Newspapers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XLMedia and FPNUF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and FP Newspapers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FP Newspapers 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 FP Newspapers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FP Newspapers has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and FP Newspapers go up and down completely randomly.
Pair Corralation between XLMedia PLC and FP Newspapers
If you would invest 14.00 in XLMedia PLC on August 30, 2024 and sell it today you would earn a total of 3.00 from holding XLMedia PLC or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XLMedia PLC vs. FP Newspapers
Performance |
| Timeline |
| XLMedia PLC |
| FP Newspapers |
XLMedia PLC and FP Newspapers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and FP Newspapers
The main advantage of trading using opposite XLMedia PLC and FP Newspapers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, FP Newspapers 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 FP Newspapers will offset losses from the drop in FP Newspapers' long position.| XLMedia PLC vs. FP Newspapers | XLMedia PLC vs. RCS MediaGroup SpA | XLMedia PLC vs. Scholastic | XLMedia PLC vs. Lee Enterprises Incorporated |
| FP Newspapers vs. Bank Rakyat | FP Newspapers vs. PT Bank Rakyat | FP Newspapers vs. Samsung Electronics Co | FP Newspapers vs. Bank Mandiri Persero |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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