Correlation Between MBIA and Clear Media
Can any of the company-specific risk be diversified away by investing in both MBIA and Clear 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 MBIA and Clear Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MBIA Inc and Clear Media Limited, you can compare the effects of market volatilities on MBIA and Clear 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 MBIA with a short position of Clear Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBIA and Clear Media.
Diversification Opportunities for MBIA and Clear Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MBIA and Clear is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MBIA Inc and Clear Media Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Media Limited and MBIA 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 MBIA Inc are associated (or correlated) with Clear Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Media Limited has no effect on the direction of MBIA i.e., MBIA and Clear Media go up and down completely randomly.
Pair Corralation between MBIA and Clear Media
If you would invest (100.00) in Clear Media Limited on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Clear Media Limited or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MBIA Inc vs. Clear Media Limited
Performance |
| Timeline |
| MBIA Inc |
| Clear Media Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MBIA and Clear Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MBIA and Clear Media
The main advantage of trading using opposite MBIA and Clear Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBIA position performs unexpectedly, Clear 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 Clear Media will offset losses from the drop in Clear Media's long position.The idea behind MBIA Inc and Clear Media Limited 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.| Clear Media vs. GameStop Corp | Clear Media vs. Dow Jones Toys | Clear Media vs. Aerofoam Metals | Clear Media vs. Wicket Gaming AB |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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