Correlation Between Squirrel Media and Inhome Prime

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

By analyzing existing cross correlation between Squirrel Media SA and Inhome Prime Properties, you can compare the effects of market volatilities on Squirrel Media and Inhome Prime 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 Squirrel Media with a short position of Inhome Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Squirrel Media and Inhome Prime.

Diversification Opportunities for Squirrel Media and Inhome Prime

0.23

Correlation Coefficient

Squirrel Media  Inhome Prime

Modest diversification

The 3 months correlation between Squirrel and Inhome is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Squirrel Media SA and Inhome Prime Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhome Prime Properties and Squirrel 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 Squirrel Media SA are associated (or correlated) with Inhome Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inhome Prime Properties has no effect on the direction of Squirrel Media i.e., Squirrel Media and Inhome Prime go up and down completely randomly.

Pair Corralation between Squirrel Media and Inhome Prime

If you would invest  124.00  in Squirrel Media SA on December 22, 2024 and sell it today you would earn a total of  146.00  from holding Squirrel Media SA or generate 117.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Squirrel Media SA  vs.  Inhome Prime Properties

Squirrel Media SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Squirrel Media SA are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Squirrel Media exhibited solid returns over the last few months and may actually be approaching a breakup point.

Inhome Prime Properties

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Squirrel Media and Inhome Prime

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

The idea behind Squirrel Media SA and Inhome Prime Properties 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.