Correlation Between ATRESMEDIA and Neinor Homes
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA and Neinor Homes 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 ATRESMEDIA and Neinor Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and Neinor Homes SA, you can compare the effects of market volatilities on ATRESMEDIA and Neinor Homes 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 ATRESMEDIA with a short position of Neinor Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and Neinor Homes.
Diversification Opportunities for ATRESMEDIA and Neinor Homes
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATRESMEDIA and Neinor is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and Neinor Homes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neinor Homes SA and ATRESMEDIA 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 ATRESMEDIA are associated (or correlated) with Neinor Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neinor Homes SA has no effect on the direction of ATRESMEDIA i.e., ATRESMEDIA and Neinor Homes go up and down completely randomly.
Pair Corralation between ATRESMEDIA and Neinor Homes
Assuming the 90 days trading horizon ATRESMEDIA is expected to generate 0.7 times more return on investment than Neinor Homes. However, ATRESMEDIA is 1.43 times less risky than Neinor Homes. It trades about 0.04 of its potential returns per unit of risk. Neinor Homes SA is currently generating about 0.01 per unit of risk. If you would invest 446.00 in ATRESMEDIA on August 29, 2024 and sell it today you would earn a total of 3.00 from holding ATRESMEDIA or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. Neinor Homes SA
Performance |
| Timeline |
| ATRESMEDIA |
| Neinor Homes SA |
ATRESMEDIA and Neinor Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and Neinor Homes
The main advantage of trading using opposite ATRESMEDIA and Neinor Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA position performs unexpectedly, Neinor Homes 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 Neinor Homes will offset losses from the drop in Neinor Homes' long position.| ATRESMEDIA vs. FUYO GENERAL LEASE | ATRESMEDIA vs. Jupiter Fund Management | ATRESMEDIA vs. Platinum Investment Management | ATRESMEDIA vs. Computer And Technologies |
| Neinor Homes vs. Apple Inc | Neinor Homes vs. Apple Inc | Neinor Homes vs. Apple Inc | Neinor Homes vs. Apple Inc |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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