Correlation Between Everyman Media and DCC Plc

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

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

Diversification Opportunities for Everyman Media and DCC Plc

-0.22

Correlation Coefficient

Everyman Media  DCC Plc

Very good diversification

The 3 months correlation between Everyman and DCC is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Everyman Media Group and DCC plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DCC plc and Everyman 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 Everyman Media Group are associated (or correlated) with DCC Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DCC plc has no effect on the direction of Everyman Media i.e., Everyman Media and DCC Plc go up and down completely randomly.

Pair Corralation between Everyman Media and DCC Plc

Assuming the 90 days trading horizon Everyman Media Group is expected to under-perform the DCC Plc. In addition to that, Everyman Media is 1.33 times more volatile than DCC plc. It trades about 0.0 of its total potential returns per unit of risk. DCC plc is currently generating about 0.06 per unit of volatility. If you would invest  463,573  in DCC plc on April 23, 2025 and sell it today you would earn a total of  20,427  from holding DCC plc or generate 4.41% return on investment over 90 days.

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

Everyman Media Group  vs.  DCC plc

Everyman Media Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Everyman Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Everyman Media is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

DCC plc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in DCC plc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, DCC Plc is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Everyman Media and DCC Plc

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

The idea behind Everyman Media Group and DCC plc 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.