Correlation Between News Corp and In Style
Can any of the company-specific risk be diversified away by investing in both News Corp and In Style 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 News Corp and In Style into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between News Corp Cl and in Style Group, you can compare the effects of market volatilities on News Corp and In Style 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 News Corp with a short position of In Style. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and In Style.
Diversification Opportunities for News Corp and In Style
Very good diversification
The 3 months correlation between News and ITS is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding News Corp Cl and in Style Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on in Style Group and News Corp 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 News Corp Cl are associated (or correlated) with In Style. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of in Style Group has no effect on the direction of News Corp i.e., News Corp and In Style go up and down completely randomly.
Pair Corralation between News Corp and In Style
Assuming the 90 days trading horizon News Corp Cl is expected to under-perform the In Style. But the stock apears to be less risky and, when comparing its historical volatility, News Corp Cl is 1.15 times less risky than In Style. The stock trades about -0.19 of its potential returns per unit of risk. The in Style Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 380,000 in in Style Group on September 26, 2024 and sell it today you would earn a total of 10,000 from holding in Style Group or generate 2.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
News Corp Cl vs. in Style Group
Performance |
Timeline |
News Corp Cl |
in Style Group |
News Corp and In Style Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with News Corp and In Style
The main advantage of trading using opposite News Corp and In Style positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News Corp position performs unexpectedly, In Style 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 In Style will offset losses from the drop in In Style's long position.News Corp vs. Uniper SE | News Corp vs. Mulberry Group PLC | News Corp vs. London Security Plc | News Corp vs. Triad Group PLC |
In Style vs. Catalyst Media Group | In Style vs. CATLIN GROUP | In Style vs. Tamburi Investment Partners | In Style vs. Magnora ASA |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |