Correlation Between ATRESMEDIA and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA and Corsair Gaming 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 Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and Corsair Gaming, you can compare the effects of market volatilities on ATRESMEDIA and Corsair Gaming 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 Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and Corsair Gaming.
Diversification Opportunities for ATRESMEDIA and Corsair Gaming
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATRESMEDIA and Corsair is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming 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 Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of ATRESMEDIA i.e., ATRESMEDIA and Corsair Gaming go up and down completely randomly.
Pair Corralation between ATRESMEDIA and Corsair Gaming
Assuming the 90 days trading horizon ATRESMEDIA is expected to generate 1.27 times less return on investment than Corsair Gaming. But when comparing it to its historical volatility, ATRESMEDIA is 2.55 times less risky than Corsair Gaming. It trades about 0.02 of its potential returns per unit of risk. Corsair Gaming is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 733.00 in Corsair Gaming on October 14, 2024 and sell it today you would lose (3.00) from holding Corsair Gaming or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. Corsair Gaming
Performance |
| Timeline |
| ATRESMEDIA |
| Corsair Gaming |
ATRESMEDIA and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and Corsair Gaming
The main advantage of trading using opposite ATRESMEDIA and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| ATRESMEDIA vs. Zurich Insurance Group | ATRESMEDIA vs. Goosehead Insurance | ATRESMEDIA vs. UNIQA INSURANCE GR | ATRESMEDIA vs. Vienna Insurance Group |
| Corsair Gaming vs. GigaMedia | Corsair Gaming vs. Nexstar Media Group | Corsair Gaming vs. TITANIUM TRANSPORTGROUP | Corsair Gaming vs. ATRESMEDIA |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |