Correlation Between Capital Metals and RTL Group
Can any of the company-specific risk be diversified away by investing in both Capital Metals and RTL Group 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 Capital Metals and RTL Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Metals PLC and RTL Group SA, you can compare the effects of market volatilities on Capital Metals and RTL Group 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 Capital Metals with a short position of RTL Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Metals and RTL Group.
Diversification Opportunities for Capital Metals and RTL Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capital and RTL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Capital Metals PLC and RTL Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTL Group SA and Capital Metals 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 Capital Metals PLC are associated (or correlated) with RTL Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTL Group SA has no effect on the direction of Capital Metals i.e., Capital Metals and RTL Group go up and down completely randomly.
Pair Corralation between Capital Metals and RTL Group
If you would invest (100.00) in RTL Group SA on August 31, 2024 and sell it today you would earn a total of 100.00 from holding RTL Group SA or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Capital Metals PLC vs. RTL Group SA
Performance |
| Timeline |
| Capital Metals PLC |
| RTL Group SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Capital Metals and RTL Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Metals and RTL Group
The main advantage of trading using opposite Capital Metals and RTL Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Metals position performs unexpectedly, RTL Group 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 RTL Group will offset losses from the drop in RTL Group's long position.| Capital Metals vs. Centamin PLC | Capital Metals vs. Anglo Asian Mining | Capital Metals vs. Metals Exploration Plc |
| RTL Group vs. Gaztransport et Technigaz | RTL Group vs. Bisichi Mining PLC | RTL Group vs. EVS Broadcast Equipment | RTL Group vs. Molson Coors Beverage |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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