Correlation Between MFE Mediaforeurope and Squirrel Media
Can any of the company-specific risk be diversified away by investing in both MFE Mediaforeurope and Squirrel 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 MFE Mediaforeurope and Squirrel Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFE Mediaforeurope NV and Squirrel Media SA, you can compare the effects of market volatilities on MFE Mediaforeurope and Squirrel 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 MFE Mediaforeurope with a short position of Squirrel Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFE Mediaforeurope and Squirrel Media.
Diversification Opportunities for MFE Mediaforeurope and Squirrel Media
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MFE and Squirrel is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding MFE Mediaforeurope NV and Squirrel Media SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Squirrel Media SA and MFE Mediaforeurope 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 MFE Mediaforeurope NV are associated (or correlated) with Squirrel Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Squirrel Media SA has no effect on the direction of MFE Mediaforeurope i.e., MFE Mediaforeurope and Squirrel Media go up and down completely randomly.
Pair Corralation between MFE Mediaforeurope and Squirrel Media
Assuming the 90 days trading horizon MFE Mediaforeurope NV is expected to generate 0.92 times more return on investment than Squirrel Media. However, MFE Mediaforeurope NV is 1.08 times less risky than Squirrel Media. It trades about 0.0 of its potential returns per unit of risk. Squirrel Media SA is currently generating about -0.05 per unit of risk. If you would invest 282.00 in MFE Mediaforeurope NV on April 24, 2025 and sell it today you would lose (3.00) from holding MFE Mediaforeurope NV or give up 1.06% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MFE Mediaforeurope NV vs. Squirrel Media SA
Performance |
Timeline |
MFE Mediaforeurope |
Squirrel Media SA |
MFE Mediaforeurope and Squirrel Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MFE Mediaforeurope and Squirrel Media
The main advantage of trading using opposite MFE Mediaforeurope and Squirrel Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFE Mediaforeurope position performs unexpectedly, Squirrel 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 Squirrel Media will offset losses from the drop in Squirrel Media's long position.MFE Mediaforeurope vs. Caixabank SA | MFE Mediaforeurope vs. Naturhouse Health SA | MFE Mediaforeurope vs. NH Hoteles | MFE Mediaforeurope vs. Azaria Rental SOCIMI |
Squirrel Media vs. Naturhouse Health SA | Squirrel Media vs. Millenium Hotels Real | Squirrel Media vs. Home Capital Rentals | Squirrel Media vs. Bankinter |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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