Correlation Between LODESTAR MIN and ProSiebenSat1 Media
Can any of the company-specific risk be diversified away by investing in both LODESTAR MIN and ProSiebenSat1 Media 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 LODESTAR MIN and ProSiebenSat1 Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LODESTAR MIN and ProSiebenSat1 Media SE, you can compare the effects of market volatilities on LODESTAR MIN and ProSiebenSat1 Media 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 LODESTAR MIN with a short position of ProSiebenSat1 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of LODESTAR MIN and ProSiebenSat1 Media.
Diversification Opportunities for LODESTAR MIN and ProSiebenSat1 Media
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LODESTAR and ProSiebenSat1 is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding LODESTAR MIN and ProSiebenSat1 Media SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProSiebenSat1 Media and LODESTAR MIN 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 LODESTAR MIN are associated (or correlated) with ProSiebenSat1 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProSiebenSat1 Media has no effect on the direction of LODESTAR MIN i.e., LODESTAR MIN and ProSiebenSat1 Media go up and down completely randomly.
Pair Corralation between LODESTAR MIN and ProSiebenSat1 Media
If you would invest 501.00 in ProSiebenSat1 Media SE on October 23, 2024 and sell it today you would earn a total of 4.00 from holding ProSiebenSat1 Media SE or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
LODESTAR MIN vs. ProSiebenSat1 Media SE
Performance |
| Timeline |
| LODESTAR MIN |
| ProSiebenSat1 Media |
LODESTAR MIN and ProSiebenSat1 Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LODESTAR MIN and ProSiebenSat1 Media
The main advantage of trading using opposite LODESTAR MIN and ProSiebenSat1 Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LODESTAR MIN position performs unexpectedly, ProSiebenSat1 Media 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 ProSiebenSat1 Media will offset losses from the drop in ProSiebenSat1 Media's long position.| LODESTAR MIN vs. FAIR ISAAC | LODESTAR MIN vs. ALTAIR RES INC | LODESTAR MIN vs. Corsair Gaming | LODESTAR MIN vs. WisdomTree Investments |
| ProSiebenSat1 Media vs. VIVENDI UNSPONARD EO | ProSiebenSat1 Media vs. News Corporation | ProSiebenSat1 Media vs. News Corporation | ProSiebenSat1 Media vs. RTL Group SA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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