Correlation Between ATRESMEDIA and LIFENET INSURANCE
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA and LIFENET INSURANCE 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 LIFENET INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and LIFENET INSURANCE CO, you can compare the effects of market volatilities on ATRESMEDIA and LIFENET INSURANCE 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 LIFENET INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and LIFENET INSURANCE.
Diversification Opportunities for ATRESMEDIA and LIFENET INSURANCE
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATRESMEDIA and LIFENET is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and LIFENET INSURANCE CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIFENET INSURANCE 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 LIFENET INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIFENET INSURANCE has no effect on the direction of ATRESMEDIA i.e., ATRESMEDIA and LIFENET INSURANCE go up and down completely randomly.
Pair Corralation between ATRESMEDIA and LIFENET INSURANCE
Assuming the 90 days trading horizon ATRESMEDIA is expected to under-perform the LIFENET INSURANCE. But the stock apears to be less risky and, when comparing its historical volatility, ATRESMEDIA is 2.46 times less risky than LIFENET INSURANCE. The stock trades about -0.02 of its potential returns per unit of risk. The LIFENET INSURANCE CO is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,050 in LIFENET INSURANCE CO on September 3, 2024 and sell it today you would earn a total of 180.00 from holding LIFENET INSURANCE CO or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. LIFENET INSURANCE CO
Performance |
| Timeline |
| ATRESMEDIA |
| LIFENET INSURANCE |
ATRESMEDIA and LIFENET INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and LIFENET INSURANCE
The main advantage of trading using opposite ATRESMEDIA and LIFENET INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA position performs unexpectedly, LIFENET INSURANCE 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 LIFENET INSURANCE will offset losses from the drop in LIFENET INSURANCE's long position.| ATRESMEDIA vs. Western Copper and | ATRESMEDIA vs. Lifeway Foods | ATRESMEDIA vs. United Natural Foods | ATRESMEDIA vs. CAL MAINE FOODS |
| LIFENET INSURANCE vs. TOWNSQUARE MEDIA INC | LIFENET INSURANCE vs. ATRESMEDIA | LIFENET INSURANCE vs. PT Global Mediacom | LIFENET INSURANCE vs. Flutter Entertainment 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |