Correlation Between Grupo Media and AdCapital

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

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

Diversification Opportunities for Grupo Media and AdCapital

0.0

Correlation Coefficient

Grupo Media  AdCapital

Pay attention - limited upside

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

Pair Corralation between Grupo Media and AdCapital

If you would invest  107.00  in Grupo Media Capital on December 23, 2024 and sell it today you would earn a total of  0.00  from holding Grupo Media Capital or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Grupo Media Capital  vs.  AdCapital AG

Grupo Media Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grupo Media Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Grupo Media is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

AdCapital AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days AdCapital AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Grupo Media and AdCapital

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

The idea behind Grupo Media Capital and AdCapital AG 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.