Correlation Between REGAL ASIAN and PROSIEBENSAT1 MEDIADR4/
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and PROSIEBENSAT1 MEDIADR4/ 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 REGAL ASIAN and PROSIEBENSAT1 MEDIADR4/ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REGAL ASIAN INVESTMENTS and PROSIEBENSAT1 MEDIADR4, you can compare the effects of market volatilities on REGAL ASIAN and PROSIEBENSAT1 MEDIADR4/ 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 REGAL ASIAN with a short position of PROSIEBENSAT1 MEDIADR4/. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and PROSIEBENSAT1 MEDIADR4/.
Diversification Opportunities for REGAL ASIAN and PROSIEBENSAT1 MEDIADR4/
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between REGAL and PROSIEBENSAT1 is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and PROSIEBENSAT1 MEDIADR4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROSIEBENSAT1 MEDIADR4/ and REGAL ASIAN 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 REGAL ASIAN INVESTMENTS are associated (or correlated) with PROSIEBENSAT1 MEDIADR4/. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROSIEBENSAT1 MEDIADR4/ has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and PROSIEBENSAT1 MEDIADR4/ go up and down completely randomly.
Pair Corralation between REGAL ASIAN and PROSIEBENSAT1 MEDIADR4/
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to under-perform the PROSIEBENSAT1 MEDIADR4/. But the stock apears to be less risky and, when comparing its historical volatility, REGAL ASIAN INVESTMENTS is 2.61 times less risky than PROSIEBENSAT1 MEDIADR4/. The stock trades about -0.38 of its potential returns per unit of risk. The PROSIEBENSAT1 MEDIADR4 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 124.00 in PROSIEBENSAT1 MEDIADR4 on September 13, 2024 and sell it today you would earn a total of 8.00 from holding PROSIEBENSAT1 MEDIADR4 or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. PROSIEBENSAT1 MEDIADR4
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| PROSIEBENSAT1 MEDIADR4/ |
REGAL ASIAN and PROSIEBENSAT1 MEDIADR4/ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and PROSIEBENSAT1 MEDIADR4/
The main advantage of trading using opposite REGAL ASIAN and PROSIEBENSAT1 MEDIADR4/ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, PROSIEBENSAT1 MEDIADR4/ 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 MEDIADR4/ will offset losses from the drop in PROSIEBENSAT1 MEDIADR4/'s long position.| REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc |
| PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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