Correlation Between ITV PLC and Aferian Plc
Can any of the company-specific risk be diversified away by investing in both ITV PLC and Aferian Plc 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 ITV PLC and Aferian Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITV PLC ADR and Aferian Plc, you can compare the effects of market volatilities on ITV PLC and Aferian Plc 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 ITV PLC with a short position of Aferian Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITV PLC and Aferian Plc.
Diversification Opportunities for ITV PLC and Aferian Plc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ITV and Aferian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ITV PLC ADR and Aferian Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aferian Plc and ITV PLC 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 ITV PLC ADR are associated (or correlated) with Aferian Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aferian Plc has no effect on the direction of ITV PLC i.e., ITV PLC and Aferian Plc go up and down completely randomly.
Pair Corralation between ITV PLC and Aferian Plc
If you would invest 911.00 in ITV PLC ADR on December 28, 2024 and sell it today you would earn a total of 118.00 from holding ITV PLC ADR or generate 12.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 96.83% |
Values | Daily Returns |
ITV PLC ADR vs. Aferian Plc
Performance |
Timeline |
ITV PLC ADR |
Aferian Plc |
ITV PLC and Aferian Plc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ITV PLC and Aferian Plc
The main advantage of trading using opposite ITV PLC and Aferian Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITV PLC position performs unexpectedly, Aferian Plc 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 Aferian Plc will offset losses from the drop in Aferian Plc's long position.ITV PLC vs. ProSiebenSat1 Media AG | ITV PLC vs. RTL Group SA | ITV PLC vs. iHeartMedia | ITV PLC vs. TV Azteca SAB |
Aferian Plc vs. ProSiebenSat1 Media AG | Aferian Plc vs. RTL Group SA | Aferian Plc vs. iHeartMedia | Aferian Plc vs. ITV PLC ADR |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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