Correlation Between Glory Star and Warner Music
Can any of the company-specific risk be diversified away by investing in both Glory Star and Warner Music 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 Glory Star and Warner Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glory Star New and Warner Music Group, you can compare the effects of market volatilities on Glory Star and Warner Music 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 Glory Star with a short position of Warner Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glory Star and Warner Music.
Diversification Opportunities for Glory Star and Warner Music
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Glory and Warner is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Glory Star New and Warner Music Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warner Music Group and Glory Star 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 Glory Star New are associated (or correlated) with Warner Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warner Music Group has no effect on the direction of Glory Star i.e., Glory Star and Warner Music go up and down completely randomly.
Pair Corralation between Glory Star and Warner Music
Assuming the 90 days horizon Glory Star New is expected to generate 41.79 times more return on investment than Warner Music. However, Glory Star is 41.79 times more volatile than Warner Music Group. It trades about 0.09 of its potential returns per unit of risk. Warner Music Group is currently generating about 0.01 per unit of risk. If you would invest 0.59 in Glory Star New on October 6, 2024 and sell it today you would lose (0.49) from holding Glory Star New or give up 83.05% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 84.65% |
Values | Daily Returns |
Glory Star New vs. Warner Music Group
Performance |
Timeline |
Glory Star New |
Warner Music Group |
Glory Star and Warner Music Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Glory Star and Warner Music
The main advantage of trading using opposite Glory Star and Warner Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glory Star position performs unexpectedly, Warner Music 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 Warner Music will offset losses from the drop in Warner Music's long position.Glory Star vs. Liberty Media | Glory Star vs. Atlanta Braves Holdings, | Glory Star vs. News Corp B | Glory Star vs. News Corp A |
Warner Music vs. News Corp A | Warner Music vs. Marcus | Warner Music vs. Liberty Media | Warner Music vs. Fox Corp Class |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Money Managers Screen money managers from public funds and ETFs managed around the world |