Correlation Between VARIOUS EATERIES and LINMON MEDIA

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Can any of the company-specific risk be diversified away by investing in both VARIOUS EATERIES and LINMON 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 VARIOUS EATERIES and LINMON MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VARIOUS EATERIES LS and LINMON MEDIA LTD, you can compare the effects of market volatilities on VARIOUS EATERIES and LINMON 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 VARIOUS EATERIES with a short position of LINMON MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of VARIOUS EATERIES and LINMON MEDIA.

Diversification Opportunities for VARIOUS EATERIES and LINMON MEDIA

-0.16
  Correlation Coefficient

Good diversification

The 3 months correlation between VARIOUS and LINMON is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding VARIOUS EATERIES LS and LINMON MEDIA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LINMON MEDIA LTD and VARIOUS EATERIES 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 VARIOUS EATERIES LS are associated (or correlated) with LINMON MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LINMON MEDIA LTD has no effect on the direction of VARIOUS EATERIES i.e., VARIOUS EATERIES and LINMON MEDIA go up and down completely randomly.

Pair Corralation between VARIOUS EATERIES and LINMON MEDIA

Assuming the 90 days horizon VARIOUS EATERIES is expected to generate 18.58 times less return on investment than LINMON MEDIA. But when comparing it to its historical volatility, VARIOUS EATERIES LS is 2.06 times less risky than LINMON MEDIA. It trades about 0.01 of its potential returns per unit of risk. LINMON MEDIA LTD is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  28.00  in LINMON MEDIA LTD on April 20, 2025 and sell it today you would earn a total of  11.00  from holding LINMON MEDIA LTD or generate 39.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

VARIOUS EATERIES LS  vs.  LINMON MEDIA LTD

 Performance 
       Timeline  
VARIOUS EATERIES 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in VARIOUS EATERIES LS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, VARIOUS EATERIES is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
LINMON MEDIA LTD 

Risk-Adjusted Performance

OK

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

VARIOUS EATERIES and LINMON MEDIA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with VARIOUS EATERIES and LINMON MEDIA

The main advantage of trading using opposite VARIOUS EATERIES and LINMON MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VARIOUS EATERIES position performs unexpectedly, LINMON 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 LINMON MEDIA will offset losses from the drop in LINMON MEDIA's long position.
The idea behind VARIOUS EATERIES LS and LINMON MEDIA LTD 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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