Correlation Between Stic Investments and MediaZen

Can any of the company-specific risk be diversified away by investing in both Stic Investments and MediaZen 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 Stic Investments and MediaZen into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Stic Investments and MediaZen, you can compare the effects of market volatilities on Stic Investments and MediaZen 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 Stic Investments with a short position of MediaZen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and MediaZen.

Diversification Opportunities for Stic Investments and MediaZen

0.0

Correlation Coefficient

Stic Investments  MediaZen

Pay attention - limited upside

The 3 months correlation between Stic and MediaZen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and MediaZen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaZen and Stic 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 Stic Investments are associated (or correlated) with MediaZen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediaZen has no effect on the direction of Stic Investments i.e., Stic Investments and MediaZen go up and down completely randomly.

Pair Corralation between Stic Investments and MediaZen

If you would invest  1,130,000  in MediaZen on October 12, 2024 and sell it today you would earn a total of  0.00  from holding MediaZen or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Stic Investments  vs.  MediaZen

Stic Investments

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Stic Investments are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Stic Investments may actually be approaching a critical reversion point that can send shares even higher in February 2025.

MediaZen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MediaZen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, MediaZen is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Stic Investments and MediaZen

The main advantage of trading using opposite Stic Investments and MediaZen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, MediaZen 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 MediaZen will offset losses from the drop in MediaZen's long position.

The idea behind Stic Investments and MediaZen pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.