Correlation Between SERI INDUSTRIAL and ATRESMEDIA

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

By analyzing existing cross correlation between SERI INDUSTRIAL EO and ATRESMEDIA, you can compare the effects of market volatilities on SERI INDUSTRIAL and ATRESMEDIA 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 SERI INDUSTRIAL with a short position of ATRESMEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERI INDUSTRIAL and ATRESMEDIA.

Diversification Opportunities for SERI INDUSTRIAL and ATRESMEDIA

-0.92

Correlation Coefficient

SERI INDUSTRIAL  ATRESMEDIA

Pay attention - limited upside

The 3 months correlation between SERI and ATRESMEDIA is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO and ATRESMEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRESMEDIA and SERI INDUSTRIAL 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 SERI INDUSTRIAL EO are associated (or correlated) with ATRESMEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRESMEDIA has no effect on the direction of SERI INDUSTRIAL i.e., SERI INDUSTRIAL and ATRESMEDIA go up and down completely randomly.

Pair Corralation between SERI INDUSTRIAL and ATRESMEDIA

Assuming the 90 days trading horizon SERI INDUSTRIAL EO is expected to under-perform the ATRESMEDIA. In addition to that, SERI INDUSTRIAL is 2.86 times more volatile than ATRESMEDIA. It trades about -0.15 of its total potential returns per unit of risk. ATRESMEDIA is currently generating about 0.21 per unit of volatility. If you would invest  431.00  in ATRESMEDIA on December 30, 2024 and sell it today you would earn a total of  89.00  from holding ATRESMEDIA or generate 20.65% return on investment over 90 days.

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

SERI INDUSTRIAL EO  vs.  ATRESMEDIA

SERI INDUSTRIAL EO

Risk-Adjusted Performance

Very Weak

Over the last 90 days SERI INDUSTRIAL EO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ATRESMEDIA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ATRESMEDIA are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, ATRESMEDIA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SERI INDUSTRIAL and ATRESMEDIA

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

The idea behind SERI INDUSTRIAL EO and ATRESMEDIA 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 CEOs Directory module to screen CEOs from public companies around the world.