Correlation Between Prosiebensat and Intermediate Capital
Can any of the company-specific risk be diversified away by investing in both Prosiebensat and Intermediate Capital 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 Intermediate Capital 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 Intermediate Capital Group, you can compare the effects of market volatilities on Prosiebensat and Intermediate Capital 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 Intermediate Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosiebensat and Intermediate Capital.
Diversification Opportunities for Prosiebensat and Intermediate Capital
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Prosiebensat and Intermediate is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Prosiebensat 1 Media and Intermediate Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Capital 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 Intermediate Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Capital has no effect on the direction of Prosiebensat i.e., Prosiebensat and Intermediate Capital go up and down completely randomly.
Pair Corralation between Prosiebensat and Intermediate Capital
Assuming the 90 days trading horizon Prosiebensat 1 Media is expected to under-perform the Intermediate Capital. In addition to that, Prosiebensat is 1.31 times more volatile than Intermediate Capital Group. It trades about -0.03 of its total potential returns per unit of risk. Intermediate Capital Group is currently generating about 0.08 per unit of volatility. If you would invest 108,521 in Intermediate Capital Group on September 2, 2024 and sell it today you would earn a total of 103,279 from holding Intermediate Capital Group or generate 95.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prosiebensat 1 Media vs. Intermediate Capital Group
Performance |
| Timeline |
| Prosiebensat 1 Media |
| Intermediate Capital |
Prosiebensat and Intermediate Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosiebensat and Intermediate Capital
The main advantage of trading using opposite Prosiebensat and Intermediate Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosiebensat position performs unexpectedly, Intermediate Capital 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 Intermediate Capital will offset losses from the drop in Intermediate Capital's long position.| Prosiebensat vs. Uniper SE | Prosiebensat vs. Mulberry Group PLC | Prosiebensat vs. London Security Plc | Prosiebensat vs. Triad Group PLC |
| Intermediate Capital vs. Scandinavian Tobacco Group | Intermediate Capital vs. Southern Copper Corp | Intermediate Capital vs. Trainline Plc | Intermediate Capital vs. Bisichi Mining PLC |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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