Correlation Between Centaur Media and Prosiebensat
Can any of the company-specific risk be diversified away by investing in both Centaur Media and Prosiebensat 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 Centaur Media and Prosiebensat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and Prosiebensat 1 Media, you can compare the effects of market volatilities on Centaur Media and Prosiebensat 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 Centaur Media with a short position of Prosiebensat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and Prosiebensat.
Diversification Opportunities for Centaur Media and Prosiebensat
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Centaur and Prosiebensat is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media and Prosiebensat 1 Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosiebensat 1 Media and Centaur Media 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 Centaur Media are associated (or correlated) with Prosiebensat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosiebensat 1 Media has no effect on the direction of Centaur Media i.e., Centaur Media and Prosiebensat go up and down completely randomly.
Pair Corralation between Centaur Media and Prosiebensat
Assuming the 90 days trading horizon Centaur Media is expected to under-perform the Prosiebensat. In addition to that, Centaur Media is 1.34 times more volatile than Prosiebensat 1 Media. It trades about -0.13 of its total potential returns per unit of risk. Prosiebensat 1 Media is currently generating about -0.13 per unit of volatility. If you would invest 584.00 in Prosiebensat 1 Media on August 28, 2024 and sell it today you would lose (103.00) from holding Prosiebensat 1 Media or give up 17.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centaur Media vs. Prosiebensat 1 Media
Performance |
| Timeline |
| Centaur Media |
| Prosiebensat 1 Media |
Centaur Media and Prosiebensat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and Prosiebensat
The main advantage of trading using opposite Centaur Media and Prosiebensat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media position performs unexpectedly, Prosiebensat 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 Prosiebensat will offset losses from the drop in Prosiebensat's long position.| Centaur Media vs. SupplyMe Capital PLC | Centaur Media vs. SM Energy Co | Centaur Media vs. FuelCell Energy | Centaur Media vs. Grand Vision Media |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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