Correlation Between Atresmedia Corporacin and Cox ABG

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

By analyzing existing cross correlation between Atresmedia Corporacin de and Cox ABG Group, you can compare the effects of market volatilities on Atresmedia Corporacin and Cox ABG 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 Corporacin with a short position of Cox ABG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia Corporacin and Cox ABG.

Diversification Opportunities for Atresmedia Corporacin and Cox ABG

0.11

Correlation Coefficient

Atresmedia Corporacin  Cox ABG

Average diversification

The 3 months correlation between Atresmedia and Cox is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia Corporacin de and Cox ABG Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cox ABG Group and Atresmedia Corporacin 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 Corporacin de are associated (or correlated) with Cox ABG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cox ABG Group has no effect on the direction of Atresmedia Corporacin i.e., Atresmedia Corporacin and Cox ABG go up and down completely randomly.

Pair Corralation between Atresmedia Corporacin and Cox ABG

Assuming the 90 days trading horizon Atresmedia Corporacin is expected to generate 15.75 times less return on investment than Cox ABG. But when comparing it to its historical volatility, Atresmedia Corporacin de is 1.77 times less risky than Cox ABG. It trades about 0.01 of its potential returns per unit of risk. Cox ABG Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  950.00  in Cox ABG Group on October 9, 2024 and sell it today you would earn a total of  30.00  from holding Cox ABG Group or generate 3.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	55.74%
Values	Daily Returns

Atresmedia Corporacin de  vs.  Cox ABG Group

Atresmedia Corporacin

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atresmedia Corporacin de has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Atresmedia Corporacin is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Cox ABG Group

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cox ABG Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Cox ABG may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Atresmedia Corporacin and Cox ABG

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

The idea behind Atresmedia Corporacin de and Cox ABG Group 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.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.