Correlation Between Prosiebensat and Systemair
Can any of the company-specific risk be diversified away by investing in both Prosiebensat and Systemair 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 Prosiebensat and Systemair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosiebensat 1 Media and Systemair AB, you can compare the effects of market volatilities on Prosiebensat and Systemair 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 Prosiebensat with a short position of Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosiebensat and Systemair.
Diversification Opportunities for Prosiebensat and Systemair
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prosiebensat and Systemair is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Prosiebensat 1 Media and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and Prosiebensat 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 Prosiebensat 1 Media are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Prosiebensat i.e., Prosiebensat and Systemair go up and down completely randomly.
Pair Corralation between Prosiebensat and Systemair
Assuming the 90 days trading horizon Prosiebensat 1 Media is expected to generate 0.7 times more return on investment than Systemair. However, Prosiebensat 1 Media is 1.44 times less risky than Systemair. It trades about 0.12 of its potential returns per unit of risk. Systemair AB is currently generating about -0.11 per unit of risk. If you would invest 505.00 in Prosiebensat 1 Media on October 26, 2024 and sell it today you would earn a total of 22.00 from holding Prosiebensat 1 Media or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Prosiebensat 1 Media vs. Systemair AB
Performance |
| Timeline |
| Prosiebensat 1 Media |
| Systemair AB |
Prosiebensat and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosiebensat and Systemair
The main advantage of trading using opposite Prosiebensat and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosiebensat position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| Prosiebensat vs. Berkshire Hathaway | Prosiebensat vs. Samsung Electronics Co | Prosiebensat vs. Samsung Electronics Co | Prosiebensat vs. Chocoladefabriken Lindt Spruengli |
| Systemair vs. Berkshire Hathaway | Systemair vs. Samsung Electronics Co | Systemair vs. Samsung Electronics Co | Systemair vs. Chocoladefabriken Lindt Spruengli |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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