Correlation Between Media Investment and Arteche Lantegi

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

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

Diversification Opportunities for Media Investment and Arteche Lantegi

-0.81

Correlation Coefficient

Media Investment  Arteche Lantegi

Pay attention - limited upside

The 3 months correlation between Media and Arteche is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Media Investment Optimization and Arteche Lantegi Elkartea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arteche Lantegi Elkartea and Media Investment 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 Media Investment Optimization are associated (or correlated) with Arteche Lantegi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arteche Lantegi Elkartea has no effect on the direction of Media Investment i.e., Media Investment and Arteche Lantegi go up and down completely randomly.

Pair Corralation between Media Investment and Arteche Lantegi

Assuming the 90 days trading horizon Media Investment Optimization is expected to under-perform the Arteche Lantegi. But the stock apears to be less risky and, when comparing its historical volatility, Media Investment Optimization is 2.51 times less risky than Arteche Lantegi. The stock trades about -0.25 of its potential returns per unit of risk. The Arteche Lantegi Elkartea is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  792.00  in Arteche Lantegi Elkartea on April 24, 2025 and sell it today you would earn a total of  378.00  from holding Arteche Lantegi Elkartea or generate 47.73% return on investment over 90 days.

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

Media Investment Optimization  vs.  Arteche Lantegi Elkartea

Media Investment Opt

Risk-Adjusted Performance

Very Weak

Over the last 90 days Media Investment Optimization has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Arteche Lantegi Elkartea

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Arteche Lantegi Elkartea are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Arteche Lantegi exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Media Investment and Arteche Lantegi

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

The idea behind Media Investment Optimization and Arteche Lantegi Elkartea 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 Transaction History module to view history of all your transactions and understand their impact on performance.