Correlation Between Prosiebensat and Seraphim Space
Can any of the company-specific risk be diversified away by investing in both Prosiebensat and Seraphim Space 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 Seraphim Space 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 Seraphim Space Investment, you can compare the effects of market volatilities on Prosiebensat and Seraphim Space 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 Seraphim Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosiebensat and Seraphim Space.
Diversification Opportunities for Prosiebensat and Seraphim Space
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prosiebensat and Seraphim is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Prosiebensat 1 Media and Seraphim Space Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seraphim Space Investment 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 Seraphim Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seraphim Space Investment has no effect on the direction of Prosiebensat i.e., Prosiebensat and Seraphim Space go up and down completely randomly.
Pair Corralation between Prosiebensat and Seraphim Space
Assuming the 90 days trading horizon Prosiebensat 1 Media is expected to under-perform the Seraphim Space. But the stock apears to be less risky and, when comparing its historical volatility, Prosiebensat 1 Media is 1.7 times less risky than Seraphim Space. The stock trades about -0.03 of its potential returns per unit of risk. The Seraphim Space Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,570 in Seraphim Space Investment on October 28, 2024 and sell it today you would earn a total of 730.00 from holding Seraphim Space Investment or generate 15.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prosiebensat 1 Media vs. Seraphim Space Investment
Performance |
| Timeline |
| Prosiebensat 1 Media |
| Seraphim Space Investment |
Prosiebensat and Seraphim Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosiebensat and Seraphim Space
The main advantage of trading using opposite Prosiebensat and Seraphim Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosiebensat position performs unexpectedly, Seraphim Space 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 Seraphim Space will offset losses from the drop in Seraphim Space's long position.| Prosiebensat vs. Discover Financial Services | Prosiebensat vs. Roebuck Food Group | Prosiebensat vs. Commerzbank AG | Prosiebensat vs. Axfood AB |
| Seraphim Space vs. SupplyMe Capital PLC | Seraphim Space vs. Premier African Minerals | Seraphim Space vs. SANTANDER UK 8 | Seraphim Space vs. Tower Resources 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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