Correlation Between ZoomerMedia and QYOU Media

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

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

Diversification Opportunities for ZoomerMedia and QYOU Media

-0.09

Correlation Coefficient

ZoomerMedia  QYOU Media

Good diversification

The 3 months correlation between ZoomerMedia and QYOU is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding ZoomerMedia Limited and QYOU Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QYOU Media and ZoomerMedia 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 ZoomerMedia Limited are associated (or correlated) with QYOU Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QYOU Media has no effect on the direction of ZoomerMedia i.e., ZoomerMedia and QYOU Media go up and down completely randomly.

Pair Corralation between ZoomerMedia and QYOU Media

Assuming the 90 days horizon ZoomerMedia Limited is expected to generate 15.31 times more return on investment than QYOU Media. However, ZoomerMedia is 15.31 times more volatile than QYOU Media. It trades about 0.13 of its potential returns per unit of risk. QYOU Media is currently generating about -0.01 per unit of risk. If you would invest  0.30  in ZoomerMedia Limited on September 3, 2024 and sell it today you would earn a total of  4.70  from holding ZoomerMedia Limited or generate 1566.67% return on investment over 90 days.

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

ZoomerMedia Limited  vs.  QYOU Media

ZoomerMedia Limited

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ZoomerMedia Limited are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, ZoomerMedia reported solid returns over the last few months and may actually be approaching a breakup point.

QYOU Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days QYOU Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, QYOU Media is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ZoomerMedia and QYOU Media

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

The idea behind ZoomerMedia Limited and QYOU Media 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.