Correlation Between News Corp and Central European
Can any of the company-specific risk be diversified away by investing in both News Corp and Central European 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 News Corp and Central European into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between News Corp A and Central European Media, you can compare the effects of market volatilities on News Corp and Central European 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 News Corp with a short position of Central European. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and Central European.
Diversification Opportunities for News Corp and Central European
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between News and Central is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding News Corp A and Central European Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central European Media and News Corp 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 News Corp A are associated (or correlated) with Central European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central European Media has no effect on the direction of News Corp i.e., News Corp and Central European go up and down completely randomly.
Pair Corralation between News Corp and Central European
If you would invest (100.00) in Central European Media on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Central European Media or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
News Corp A vs. Central European Media
Performance |
| Timeline |
| News Corp A |
| Central European Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
News Corp and Central European Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with News Corp and Central European
The main advantage of trading using opposite News Corp and Central European positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News Corp position performs unexpectedly, Central European 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 Central European will offset losses from the drop in Central European's long position.| News Corp vs. Marcus | News Corp vs. Liberty Media | News Corp vs. Warner Music Group | News Corp vs. Fox Corp Class |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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