Correlation Between Atresmedia and Hargreaves Lansdown
Can any of the company-specific risk be diversified away by investing in both Atresmedia and Hargreaves Lansdown 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 Hargreaves Lansdown into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atresmedia and Hargreaves Lansdown plc, you can compare the effects of market volatilities on Atresmedia and Hargreaves Lansdown 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 Hargreaves Lansdown. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia and Hargreaves Lansdown.
Diversification Opportunities for Atresmedia and Hargreaves Lansdown
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atresmedia and Hargreaves is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia and Hargreaves Lansdown plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hargreaves Lansdown plc 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 Hargreaves Lansdown. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hargreaves Lansdown plc has no effect on the direction of Atresmedia i.e., Atresmedia and Hargreaves Lansdown go up and down completely randomly.
Pair Corralation between Atresmedia and Hargreaves Lansdown
Assuming the 90 days trading horizon Atresmedia is expected to generate 0.72 times more return on investment than Hargreaves Lansdown. However, Atresmedia is 1.39 times less risky than Hargreaves Lansdown. It trades about 0.07 of its potential returns per unit of risk. Hargreaves Lansdown plc is currently generating about 0.04 per unit of risk. If you would invest 292.00 in Atresmedia on October 27, 2024 and sell it today you would earn a total of 145.00 from holding Atresmedia or generate 49.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Atresmedia vs. Hargreaves Lansdown plc
Performance |
Timeline |
Atresmedia |
Hargreaves Lansdown plc |
Atresmedia and Hargreaves Lansdown Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atresmedia and Hargreaves Lansdown
The main advantage of trading using opposite Atresmedia and Hargreaves Lansdown positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia position performs unexpectedly, Hargreaves Lansdown 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 Hargreaves Lansdown will offset losses from the drop in Hargreaves Lansdown's long position.Atresmedia vs. Light Science Technologies | Atresmedia vs. Monster Beverage Corp | Atresmedia vs. Pressure Technologies Plc | Atresmedia vs. Symphony Environmental Technologies |
Hargreaves Lansdown vs. Aptitude Software Group | Hargreaves Lansdown vs. Oxford Technology 2 | Hargreaves Lansdown vs. DXC Technology Co | Hargreaves Lansdown vs. International Biotechnology Trust |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |