Correlation Between Hello and Media Sentiment

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

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

Diversification Opportunities for Hello and Media Sentiment

-0.65

Correlation Coefficient

Hello  Media Sentiment

Excellent diversification

The 3 months correlation between Hello and Media is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hello Group and Media Sentiment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Sentiment and Hello 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 Hello Group are associated (or correlated) with Media Sentiment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Sentiment has no effect on the direction of Hello i.e., Hello and Media Sentiment go up and down completely randomly.

Pair Corralation between Hello and Media Sentiment

Given the investment horizon of 90 days Hello Group is expected to generate 0.76 times more return on investment than Media Sentiment. However, Hello Group is 1.31 times less risky than Media Sentiment. It trades about 0.19 of its potential returns per unit of risk. Media Sentiment is currently generating about -0.12 per unit of risk. If you would invest  588.00  in Hello Group on May 4, 2025 and sell it today you would earn a total of  214.00  from holding Hello Group or generate 36.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.92%
Values	Daily Returns

Hello Group  vs.  Media Sentiment

Hello Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hello Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very weak primary indicators, Hello displayed solid returns over the last few months and may actually be approaching a breakup point.

Media Sentiment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Media Sentiment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Hello and Media Sentiment

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

The idea behind Hello Group and Media Sentiment 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..