Correlation Between Here Media and New Era

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

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

Diversification Opportunities for Here Media and New Era

0.0

Correlation Coefficient

Here Media  New Era

Pay attention - limited upside

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

Pair Corralation between Here Media and New Era

If you would invest  0.02  in Here Media on September 22, 2024 and sell it today you would earn a total of  0.00  from holding Here Media or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.73%
Values	Daily Returns

Here Media  vs.  New Era Helium

Here Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Here Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward indicators, Here Media is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

New Era Helium

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days New Era Helium has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Here Media and New Era

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

The idea behind Here Media and New Era Helium 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.