Correlation Between ATRESMEDIA and Tokyo Electron
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA and Tokyo Electron 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 Tokyo Electron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and Tokyo Electron Limited, you can compare the effects of market volatilities on ATRESMEDIA and Tokyo Electron 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 Tokyo Electron. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and Tokyo Electron.
Diversification Opportunities for ATRESMEDIA and Tokyo Electron
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ATRESMEDIA and Tokyo is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and Tokyo Electron Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tokyo Electron 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 Tokyo Electron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tokyo Electron has no effect on the direction of ATRESMEDIA i.e., ATRESMEDIA and Tokyo Electron go up and down completely randomly.
Pair Corralation between ATRESMEDIA and Tokyo Electron
Assuming the 90 days trading horizon ATRESMEDIA is expected to under-perform the Tokyo Electron. But the stock apears to be less risky and, when comparing its historical volatility, ATRESMEDIA is 2.72 times less risky than Tokyo Electron. The stock trades about -0.02 of its potential returns per unit of risk. The Tokyo Electron Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 14,775 in Tokyo Electron Limited on September 3, 2024 and sell it today you would lose (100.00) from holding Tokyo Electron Limited or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. Tokyo Electron Limited
Performance |
| Timeline |
| ATRESMEDIA |
| Tokyo Electron |
ATRESMEDIA and Tokyo Electron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and Tokyo Electron
The main advantage of trading using opposite ATRESMEDIA and Tokyo Electron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA position performs unexpectedly, Tokyo Electron 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 Tokyo Electron will offset losses from the drop in Tokyo Electron's long position.| ATRESMEDIA vs. Western Copper and | ATRESMEDIA vs. Lifeway Foods | ATRESMEDIA vs. United Natural Foods | ATRESMEDIA vs. CAL MAINE FOODS |
| Tokyo Electron vs. Ares Management Corp | Tokyo Electron vs. Flutter Entertainment PLC | Tokyo Electron vs. National Health Investors | Tokyo Electron 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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