Correlation Between Sherborne Investors and One Media

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

By analyzing existing cross correlation between Sherborne Investors Guernsey and One Media iP, you can compare the effects of market volatilities on Sherborne Investors and One 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 Sherborne Investors with a short position of One Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sherborne Investors and One Media.

Diversification Opportunities for Sherborne Investors and One Media

0.84

Correlation Coefficient

Sherborne Investors  One Media

Very poor diversification

The 3 months correlation between Sherborne and One is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sherborne Investors Guernsey and One Media iP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Media iP and Sherborne Investors 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 Sherborne Investors Guernsey are associated (or correlated) with One Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Media iP has no effect on the direction of Sherborne Investors i.e., Sherborne Investors and One Media go up and down completely randomly.

Pair Corralation between Sherborne Investors and One Media

Assuming the 90 days trading horizon Sherborne Investors is expected to generate 1.24 times less return on investment than One Media. But when comparing it to its historical volatility, Sherborne Investors Guernsey is 1.01 times less risky than One Media. It trades about 0.16 of its potential returns per unit of risk. One Media iP is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  375.00  in One Media iP on April 24, 2025 and sell it today you would earn a total of  50.00  from holding One Media iP or generate 13.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Sherborne Investors Guernsey  vs.  One Media iP

Sherborne Investors

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sherborne Investors Guernsey are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Sherborne Investors may actually be approaching a critical reversion point that can send shares even higher in August 2025.

One Media iP

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in One Media iP are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, One Media unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sherborne Investors and One Media

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

The idea behind Sherborne Investors Guernsey and One Media iP 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.