Correlation Between News Corp and Curiositystream

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

By analyzing existing cross correlation between News Corp A and Curiositystream, you can compare the effects of market volatilities on News Corp and Curiositystream 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 News Corp with a short position of Curiositystream. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and Curiositystream.

Diversification Opportunities for News Corp and Curiositystream

-0.44

Correlation Coefficient

News Corp  Curiositystream

Very good diversification

The 3 months correlation between News and Curiositystream is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding News Corp A and Curiositystream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curiositystream and News Corp 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 News Corp A are associated (or correlated) with Curiositystream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curiositystream has no effect on the direction of News Corp i.e., News Corp and Curiositystream go up and down completely randomly.

Pair Corralation between News Corp and Curiositystream

Given the investment horizon of 90 days News Corp A is expected to under-perform the Curiositystream. But the stock apears to be less risky and, when comparing its historical volatility, News Corp A is 3.99 times less risky than Curiositystream. The stock trades about -0.04 of its potential returns per unit of risk. The Curiositystream is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  157.00  in Curiositystream on September 13, 2024 and sell it today you would earn a total of  3.00  from holding Curiositystream or generate 1.91% return on investment over 90 days.

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

News Corp A  vs.  Curiositystream

News Corp A

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in News Corp A are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, News Corp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Curiositystream

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Curiositystream has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Curiositystream is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with News Corp and Curiositystream

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

The idea behind News Corp A and Curiositystream 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.

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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.