Correlation Between NORTH MEDIA and Collins Foods
Can any of the company-specific risk be diversified away by investing in both NORTH MEDIA and Collins Foods 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 NORTH MEDIA and Collins Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NORTH MEDIA AS and Collins Foods Limited, you can compare the effects of market volatilities on NORTH MEDIA and Collins Foods 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 NORTH MEDIA with a short position of Collins Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORTH MEDIA and Collins Foods.
Diversification Opportunities for NORTH MEDIA and Collins Foods
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NORTH and Collins is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding NORTH MEDIA AS and Collins Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collins Foods Limited and NORTH MEDIA 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 NORTH MEDIA AS are associated (or correlated) with Collins Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collins Foods Limited has no effect on the direction of NORTH MEDIA i.e., NORTH MEDIA and Collins Foods go up and down completely randomly.
Pair Corralation between NORTH MEDIA and Collins Foods
Assuming the 90 days horizon NORTH MEDIA AS is expected to under-perform the Collins Foods. But the stock apears to be less risky and, when comparing its historical volatility, NORTH MEDIA AS is 1.01 times less risky than Collins Foods. The stock trades about -0.12 of its potential returns per unit of risk. The Collins Foods Limited is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 535.00 in Collins Foods Limited on August 28, 2025 and sell it today you would earn a total of 90.00 from holding Collins Foods Limited or generate 16.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORTH MEDIA AS vs. Collins Foods Limited
Performance |
| Timeline |
| NORTH MEDIA AS |
| Collins Foods Limited |
NORTH MEDIA and Collins Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORTH MEDIA and Collins Foods
The main advantage of trading using opposite NORTH MEDIA and Collins Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORTH MEDIA position performs unexpectedly, Collins Foods 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 Collins Foods will offset losses from the drop in Collins Foods' long position.| NORTH MEDIA vs. Apple Inc | NORTH MEDIA vs. Apple Inc | NORTH MEDIA vs. Apple Inc | NORTH MEDIA vs. Apple Inc |
| Collins Foods vs. Starbucks | Collins Foods vs. Superior Plus Corp | Collins Foods vs. NMI Holdings | Collins Foods vs. SIVERS SEMICONDUCTORS 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |