Correlation Between TR Property and LBG Media
Can any of the company-specific risk be diversified away by investing in both TR Property and LBG 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 TR Property and LBG Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TR Property Investment and LBG Media PLC, you can compare the effects of market volatilities on TR Property and LBG 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 TR Property with a short position of LBG Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of TR Property and LBG Media.
Diversification Opportunities for TR Property and LBG Media
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TRY and LBG is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding TR Property Investment and LBG Media PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LBG Media PLC and TR Property 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 TR Property Investment are associated (or correlated) with LBG Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LBG Media PLC has no effect on the direction of TR Property i.e., TR Property and LBG Media go up and down completely randomly.
Pair Corralation between TR Property and LBG Media
Assuming the 90 days trading horizon TR Property Investment is expected to generate 0.49 times more return on investment than LBG Media. However, TR Property Investment is 2.03 times less risky than LBG Media. It trades about -0.1 of its potential returns per unit of risk. LBG Media PLC is currently generating about -0.07 per unit of risk. If you would invest 34,550 in TR Property Investment on September 9, 2024 and sell it today you would lose (2,550) from holding TR Property Investment or give up 7.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
TR Property Investment vs. LBG Media PLC
Performance |
Timeline |
TR Property Investment |
LBG Media PLC |
TR Property and LBG Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TR Property and LBG Media
The main advantage of trading using opposite TR Property and LBG Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TR Property position performs unexpectedly, LBG 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 LBG Media will offset losses from the drop in LBG Media's long position.TR Property vs. Roebuck Food Group | TR Property vs. Gruppo MutuiOnline SpA | TR Property vs. Grieg Seafood | TR Property vs. FC Investment Trust |
LBG Media vs. Samsung Electronics Co | LBG Media vs. Samsung Electronics Co | LBG Media vs. Hyundai Motor | LBG Media vs. Toyota Motor Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Equity Valuation Check real value of public entities based on technical and fundamental data |