Correlation Between ATRESMEDIA and SRI TRANG
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA and SRI TRANG 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 SRI TRANG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and SRI TRANG AGR FOR , you can compare the effects of market volatilities on ATRESMEDIA and SRI TRANG 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 SRI TRANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and SRI TRANG.
Diversification Opportunities for ATRESMEDIA and SRI TRANG
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATRESMEDIA and SRI is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and SRI TRANG AGR FOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SRI TRANG AGR 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 SRI TRANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SRI TRANG AGR has no effect on the direction of ATRESMEDIA i.e., ATRESMEDIA and SRI TRANG go up and down completely randomly.
Pair Corralation between ATRESMEDIA and SRI TRANG
Assuming the 90 days trading horizon ATRESMEDIA is expected to generate 2.12 times less return on investment than SRI TRANG. But when comparing it to its historical volatility, ATRESMEDIA is 3.45 times less risky than SRI TRANG. It trades about 0.08 of its potential returns per unit of risk. SRI TRANG AGR FOR is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 31.00 in SRI TRANG AGR FOR on September 4, 2024 and sell it today you would earn a total of 14.00 from holding SRI TRANG AGR FOR or generate 45.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. SRI TRANG AGR FOR
Performance |
| Timeline |
| ATRESMEDIA |
| SRI TRANG AGR |
ATRESMEDIA and SRI TRANG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and SRI TRANG
The main advantage of trading using opposite ATRESMEDIA and SRI TRANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA position performs unexpectedly, SRI TRANG 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 SRI TRANG will offset losses from the drop in SRI TRANG's long position.| ATRESMEDIA vs. TROPHY GAMES DEV | ATRESMEDIA vs. ANGLER GAMING PLC | ATRESMEDIA vs. International Game Technology | ATRESMEDIA vs. Hochschild Mining plc |
| SRI TRANG vs. Dno ASA | SRI TRANG vs. PT Astra International | SRI TRANG vs. Superior Plus Corp | SRI TRANG vs. NMI Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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