Correlation Between International Media and AXIOS Sustainable

Can any of the company-specific risk be diversified away by investing in both International Media and AXIOS Sustainable 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 AXIOS Sustainable 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 AXIOS Sustainable Growth, you can compare the effects of market volatilities on International Media and AXIOS Sustainable 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 AXIOS Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Media and AXIOS Sustainable.

Diversification Opportunities for International Media and AXIOS Sustainable

-0.38

Correlation Coefficient

International Media  AXIOS Sustainable

Very good diversification

The 3 months correlation between International and AXIOS is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding International Media Acquisitio and AXIOS Sustainable Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXIOS Sustainable Growth 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 AXIOS Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXIOS Sustainable Growth has no effect on the direction of International Media i.e., International Media and AXIOS Sustainable go up and down completely randomly.

Pair Corralation between International Media and AXIOS Sustainable

If you would invest  1,043  in AXIOS Sustainable Growth on September 28, 2024 and sell it today you would earn a total of  0.00  from holding AXIOS Sustainable Growth or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

International Media Acquisitio  vs.  AXIOS Sustainable Growth

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. In spite of fairly stable basic indicators, International Media is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

AXIOS Sustainable Growth

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with International Media and AXIOS Sustainable

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

The idea behind International Media Acquisition and AXIOS Sustainable Growth 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.