Correlation Between CuriosityStream and Sirius XM
Can any of the company-specific risk be diversified away by investing in both CuriosityStream and Sirius XM 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 CuriosityStream and Sirius XM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CuriosityStream and Sirius XM Holding, you can compare the effects of market volatilities on CuriosityStream and Sirius XM 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 CuriosityStream with a short position of Sirius XM. Check out your portfolio center. Please also check ongoing floating volatility patterns of CuriosityStream and Sirius XM.
Diversification Opportunities for CuriosityStream and Sirius XM
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CuriosityStream and Sirius is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding CuriosityStream and Sirius XM Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sirius XM Holding and CuriosityStream 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 CuriosityStream are associated (or correlated) with Sirius XM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sirius XM Holding has no effect on the direction of CuriosityStream i.e., CuriosityStream and Sirius XM go up and down completely randomly.
Pair Corralation between CuriosityStream and Sirius XM
Assuming the 90 days horizon CuriosityStream is expected to generate 8.82 times more return on investment than Sirius XM. However, CuriosityStream is 8.82 times more volatile than Sirius XM Holding. It trades about 0.2 of its potential returns per unit of risk. Sirius XM Holding is currently generating about -0.17 per unit of risk. If you would invest 1.61 in CuriosityStream on February 5, 2024 and sell it today you would earn a total of 0.75 from holding CuriosityStream or generate 46.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 86.36% |
Values | Daily Returns |
CuriosityStream vs. Sirius XM Holding
Performance |
Timeline |
CuriosityStream |
Sirius XM Holding |
CuriosityStream and Sirius XM Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CuriosityStream and Sirius XM
The main advantage of trading using opposite CuriosityStream and Sirius XM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CuriosityStream position performs unexpectedly, Sirius XM 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 Sirius XM will offset losses from the drop in Sirius XM's long position.CuriosityStream vs. Eos Energy Enterprises | CuriosityStream vs. CannBioRx Life Sciences | CuriosityStream vs. Whole Earth Brands | CuriosityStream vs. Advantage Solutions |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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