Correlation Between International Media and Breeze Holdings

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

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

Diversification Opportunities for International Media and Breeze Holdings

-0.16

Correlation Coefficient

International Media  Breeze Holdings

Good diversification

The 3 months correlation between International and Breeze is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding International Media Acquisitio and Breeze Holdings Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Breeze Holdings Acqu and International 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 International Media Acquisition are associated (or correlated) with Breeze Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Breeze Holdings Acqu has no effect on the direction of International Media i.e., International Media and Breeze Holdings go up and down completely randomly.

Pair Corralation between International Media and Breeze Holdings

Assuming the 90 days horizon International Media Acquisition is expected to generate 4.58 times more return on investment than Breeze Holdings. However, International Media is 4.58 times more volatile than Breeze Holdings Acquisition. It trades about 0.08 of its potential returns per unit of risk. Breeze Holdings Acquisition is currently generating about 0.06 per unit of risk. If you would invest  9.50  in International Media Acquisition on October 11, 2024 and sell it today you would lose (3.50) from holding International Media Acquisition or give up 36.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	58.22%
Values	Daily Returns

International Media Acquisitio  vs.  Breeze Holdings Acquisition

International Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days International Media Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, International Media is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Breeze Holdings Acqu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Breeze Holdings Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Breeze Holdings is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with International Media and Breeze Holdings

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

The idea behind International Media Acquisition and Breeze Holdings Acquisition 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.