Correlation Between Air Canada and ProSiebenSat1 Media
Can any of the company-specific risk be diversified away by investing in both Air Canada 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 Air Canada and ProSiebenSat1 Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Canada and ProSiebenSat1 Media SE, you can compare the effects of market volatilities on Air Canada 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 Air Canada with a short position of ProSiebenSat1 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Canada and ProSiebenSat1 Media.
Diversification Opportunities for Air Canada and ProSiebenSat1 Media
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Air and ProSiebenSat1 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Air Canada and ProSiebenSat1 Media SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProSiebenSat1 Media and Air Canada 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 Air Canada 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 Air Canada i.e., Air Canada and ProSiebenSat1 Media go up and down completely randomly.
Pair Corralation between Air Canada and ProSiebenSat1 Media
Assuming the 90 days trading horizon Air Canada is expected to generate 0.82 times more return on investment than ProSiebenSat1 Media. However, Air Canada is 1.23 times less risky than ProSiebenSat1 Media. It trades about 0.01 of its potential returns per unit of risk. ProSiebenSat1 Media SE is currently generating about -0.03 per unit of risk. If you would invest 1,265 in Air Canada on November 3, 2024 and sell it today you would earn a total of 32.00 from holding Air Canada or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Canada vs. ProSiebenSat1 Media SE
Performance |
| Timeline |
| Air Canada |
| ProSiebenSat1 Media |
Air Canada and ProSiebenSat1 Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Canada and ProSiebenSat1 Media
The main advantage of trading using opposite Air Canada and ProSiebenSat1 Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Canada 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.| Air Canada vs. GMO Internet | Air Canada vs. China Communications Services | Air Canada vs. INTERNET INJPADR 1 | Air Canada vs. FLOW TRADERS LTD |
| ProSiebenSat1 Media vs. Aedas Homes SA | ProSiebenSat1 Media vs. Cal Maine Foods | ProSiebenSat1 Media vs. American Homes 4 | ProSiebenSat1 Media vs. Grupo Carso SAB |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |