Correlation Between Saniona AB and Media

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

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

Diversification Opportunities for Saniona AB and Media

-0.65

Correlation Coefficient

Saniona AB  Media

Excellent diversification

The 3 months correlation between Saniona and Media is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Saniona AB TO and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games and Saniona AB 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 Saniona AB TO are associated (or correlated) with Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of Saniona AB i.e., Saniona AB and Media go up and down completely randomly.

Pair Corralation between Saniona AB and Media

Assuming the 90 days trading horizon Saniona AB TO is expected to under-perform the Media. In addition to that, Saniona AB is 1.33 times more volatile than Media and Games. It trades about -0.2 of its total potential returns per unit of risk. Media and Games is currently generating about -0.06 per unit of volatility. If you would invest  3,605  in Media and Games on October 24, 2024 and sell it today you would lose (185.00) from holding Media and Games or give up 5.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	94.12%
Values	Daily Returns

Saniona AB TO  vs.  Media and Games

Saniona AB TO

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Saniona AB TO are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Saniona AB sustained solid returns over the last few months and may actually be approaching a breakup point.

Media and Games

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Media and Games has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Saniona AB and Media

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

The idea behind Saniona AB TO and Media and Games 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.