Correlation Between ATRESMEDIA and TOTAL GABON
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA and TOTAL GABON 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 TOTAL GABON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and TOTAL GABON, you can compare the effects of market volatilities on ATRESMEDIA and TOTAL GABON 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 TOTAL GABON. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and TOTAL GABON.
Diversification Opportunities for ATRESMEDIA and TOTAL GABON
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATRESMEDIA and TOTAL is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and TOTAL GABON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTAL GABON 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 TOTAL GABON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTAL GABON has no effect on the direction of ATRESMEDIA i.e., ATRESMEDIA and TOTAL GABON go up and down completely randomly.
Pair Corralation between ATRESMEDIA and TOTAL GABON
Assuming the 90 days trading horizon ATRESMEDIA is expected to under-perform the TOTAL GABON. But the stock apears to be less risky and, when comparing its historical volatility, ATRESMEDIA is 2.95 times less risky than TOTAL GABON. The stock trades about -0.03 of its potential returns per unit of risk. The TOTAL GABON is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 16,000 in TOTAL GABON on September 5, 2024 and sell it today you would earn a total of 2,500 from holding TOTAL GABON or generate 15.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. TOTAL GABON
Performance |
| Timeline |
| ATRESMEDIA |
| TOTAL GABON |
ATRESMEDIA and TOTAL GABON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and TOTAL GABON
The main advantage of trading using opposite ATRESMEDIA and TOTAL GABON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA position performs unexpectedly, TOTAL GABON 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 TOTAL GABON will offset losses from the drop in TOTAL GABON's long position.| ATRESMEDIA vs. TOTAL GABON | ATRESMEDIA vs. Walgreens Boots Alliance | ATRESMEDIA vs. Peak Resources Limited |
| TOTAL GABON vs. ELMOS SEMICONDUCTOR | TOTAL GABON vs. Flutter Entertainment PLC | TOTAL GABON vs. REMEDY ENTERTAINMENT OYJ | TOTAL GABON vs. Universal Entertainment |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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