Correlation Between ATRESMEDIA and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA and FEMALE HEALTH 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 FEMALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and FEMALE HEALTH, you can compare the effects of market volatilities on ATRESMEDIA and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and FEMALE HEALTH.
Diversification Opportunities for ATRESMEDIA and FEMALE HEALTH
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ATRESMEDIA and FEMALE is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of ATRESMEDIA i.e., ATRESMEDIA and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between ATRESMEDIA and FEMALE HEALTH
Assuming the 90 days trading horizon ATRESMEDIA is expected to generate 0.2 times more return on investment than FEMALE HEALTH. However, ATRESMEDIA is 4.95 times less risky than FEMALE HEALTH. It trades about 0.08 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about -0.02 per unit of risk. If you would invest 272.00 in ATRESMEDIA on November 5, 2024 and sell it today you would earn a total of 164.00 from holding ATRESMEDIA or generate 60.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. FEMALE HEALTH
Performance |
| Timeline |
| ATRESMEDIA |
| FEMALE HEALTH |
ATRESMEDIA and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and FEMALE HEALTH
The main advantage of trading using opposite ATRESMEDIA and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| ATRESMEDIA vs. United Insurance Holdings | ATRESMEDIA vs. SENECA FOODS A | ATRESMEDIA vs. UNIQA INSURANCE GR | ATRESMEDIA vs. Insurance Australia Group |
| FEMALE HEALTH vs. Tianjin Capital Environmental | FEMALE HEALTH vs. COREBRIDGE FINANCIAL INC | FEMALE HEALTH vs. MAANSHAN IRON H | FEMALE HEALTH vs. Discover Financial Services |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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