Correlation Between ATRESMEDIA and Japan Asia
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA and Japan Asia 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 Japan Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and Japan Asia Investment, you can compare the effects of market volatilities on ATRESMEDIA and Japan Asia 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 Japan Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and Japan Asia.
Diversification Opportunities for ATRESMEDIA and Japan Asia
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATRESMEDIA and Japan is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and Japan Asia Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Asia Investment 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 Japan Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Asia Investment has no effect on the direction of ATRESMEDIA i.e., ATRESMEDIA and Japan Asia go up and down completely randomly.
Pair Corralation between ATRESMEDIA and Japan Asia
Assuming the 90 days trading horizon ATRESMEDIA is expected to generate 0.35 times more return on investment than Japan Asia. However, ATRESMEDIA is 2.83 times less risky than Japan Asia. It trades about 0.05 of its potential returns per unit of risk. Japan Asia Investment is currently generating about 0.01 per unit of risk. If you would invest 393.00 in ATRESMEDIA on October 12, 2024 and sell it today you would earn a total of 48.00 from holding ATRESMEDIA or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. Japan Asia Investment
Performance |
| Timeline |
| ATRESMEDIA |
| Japan Asia Investment |
ATRESMEDIA and Japan Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and Japan Asia
The main advantage of trading using opposite ATRESMEDIA and Japan Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA position performs unexpectedly, Japan Asia 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 Japan Asia will offset losses from the drop in Japan Asia's long position.| ATRESMEDIA vs. PLAYTECH | ATRESMEDIA vs. TRAVEL LEISURE DL 01 | ATRESMEDIA vs. ARISTOCRAT LEISURE | ATRESMEDIA vs. ANTA SPORTS PRODUCT |
| Japan Asia vs. BOS BETTER ONLINE | Japan Asia vs. CARSALESCOM | Japan Asia vs. MUTUIONLINE | Japan Asia vs. NEWELL RUBBERMAID |
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.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |