Correlation Between Zeder Investments and EMedia Holdings
Can any of the company-specific risk be diversified away by investing in both Zeder Investments and EMedia Holdings 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 Zeder Investments and EMedia Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zeder Investments and eMedia Holdings Limited, you can compare the effects of market volatilities on Zeder Investments and EMedia Holdings 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 Zeder Investments with a short position of EMedia Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zeder Investments and EMedia Holdings.
Diversification Opportunities for Zeder Investments and EMedia Holdings
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zeder and EMedia is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Zeder Investments and eMedia Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eMedia Holdings and Zeder Investments 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 Zeder Investments are associated (or correlated) with EMedia Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eMedia Holdings has no effect on the direction of Zeder Investments i.e., Zeder Investments and EMedia Holdings go up and down completely randomly.
Pair Corralation between Zeder Investments and EMedia Holdings
Assuming the 90 days trading horizon Zeder Investments is expected to generate 1.89 times more return on investment than EMedia Holdings. However, Zeder Investments is 1.89 times more volatile than eMedia Holdings Limited. It trades about -0.14 of its potential returns per unit of risk. eMedia Holdings Limited is currently generating about -0.35 per unit of risk. If you would invest 18,600 in Zeder Investments on August 28, 2024 and sell it today you would lose (1,500) from holding Zeder Investments or give up 8.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zeder Investments vs. eMedia Holdings Limited
Performance |
| Timeline |
| Zeder Investments |
| eMedia Holdings |
Zeder Investments and EMedia Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zeder Investments and EMedia Holdings
The main advantage of trading using opposite Zeder Investments and EMedia Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zeder Investments position performs unexpectedly, EMedia Holdings 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 EMedia Holdings will offset losses from the drop in EMedia Holdings' long position.| Zeder Investments vs. eMedia Holdings Limited | Zeder Investments vs. Frontier Transport Holdings | Zeder Investments vs. CA Sales Holdings | Zeder Investments vs. Reinet Investments SCA |
| EMedia Holdings vs. Centaur Bci Balanced | EMedia Holdings vs. Growthpoint Properties | EMedia Holdings vs. Bowler Metcalf | EMedia Holdings vs. Shoprite 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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