Correlation Between Macerich and Prosiebensat
Can any of the company-specific risk be diversified away by investing in both Macerich and Prosiebensat 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 Macerich and Prosiebensat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macerich Co and Prosiebensat 1 Media, you can compare the effects of market volatilities on Macerich and Prosiebensat 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 Macerich with a short position of Prosiebensat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macerich and Prosiebensat.
Diversification Opportunities for Macerich and Prosiebensat
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Macerich and Prosiebensat is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Macerich Co and Prosiebensat 1 Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosiebensat 1 Media and Macerich 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 Macerich Co are associated (or correlated) with Prosiebensat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosiebensat 1 Media has no effect on the direction of Macerich i.e., Macerich and Prosiebensat go up and down completely randomly.
Pair Corralation between Macerich and Prosiebensat
Assuming the 90 days trading horizon Macerich Co is expected to generate 0.92 times more return on investment than Prosiebensat. However, Macerich Co is 1.09 times less risky than Prosiebensat. It trades about 0.3 of its potential returns per unit of risk. Prosiebensat 1 Media is currently generating about -0.12 per unit of risk. If you would invest 1,508 in Macerich Co on September 3, 2024 and sell it today you would earn a total of 612.00 from holding Macerich Co or generate 40.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.92% |
| Values | Daily Returns |
Macerich Co vs. Prosiebensat 1 Media
Performance |
| Timeline |
| Macerich |
| Prosiebensat 1 Media |
Macerich and Prosiebensat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macerich and Prosiebensat
The main advantage of trading using opposite Macerich and Prosiebensat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macerich position performs unexpectedly, Prosiebensat 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 Prosiebensat will offset losses from the drop in Prosiebensat's long position.| Macerich vs. Prosiebensat 1 Media | Macerich vs. Allianz Technology Trust | Macerich vs. Centaur Media | Macerich vs. Intermediate Capital Group |
| Prosiebensat vs. Auction Technology Group | Prosiebensat vs. Monster Beverage Corp | Prosiebensat vs. International Biotechnology Trust | Prosiebensat vs. Sunny Optical Technology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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