Correlation Between CTS Eventim and ViacomCBS
Can any of the company-specific risk be diversified away by investing in both CTS Eventim and ViacomCBS 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 CTS Eventim and ViacomCBS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTS Eventim AG and ViacomCBS, you can compare the effects of market volatilities on CTS Eventim and ViacomCBS 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 CTS Eventim with a short position of ViacomCBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTS Eventim and ViacomCBS.
Diversification Opportunities for CTS Eventim and ViacomCBS
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CTS and ViacomCBS is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CTS Eventim AG and ViacomCBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ViacomCBS and CTS Eventim 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 CTS Eventim AG are associated (or correlated) with ViacomCBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ViacomCBS has no effect on the direction of CTS Eventim i.e., CTS Eventim and ViacomCBS go up and down completely randomly.
Pair Corralation between CTS Eventim and ViacomCBS
Assuming the 90 days trading horizon CTS Eventim AG is expected to generate 0.56 times more return on investment than ViacomCBS. However, CTS Eventim AG is 1.78 times less risky than ViacomCBS. It trades about 0.05 of its potential returns per unit of risk. ViacomCBS is currently generating about -0.01 per unit of risk. If you would invest 6,287 in CTS Eventim AG on September 12, 2024 and sell it today you would earn a total of 2,003 from holding CTS Eventim AG or generate 31.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTS Eventim AG vs. ViacomCBS
Performance |
| Timeline |
| CTS Eventim AG |
| ViacomCBS |
CTS Eventim and ViacomCBS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTS Eventim and ViacomCBS
The main advantage of trading using opposite CTS Eventim and ViacomCBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTS Eventim position performs unexpectedly, ViacomCBS 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 ViacomCBS will offset losses from the drop in ViacomCBS's long position.| CTS Eventim vs. SANOK RUBBER ZY | CTS Eventim vs. Luckin Coffee | CTS Eventim vs. Carnegie Clean Energy | CTS Eventim vs. ETFS Coffee ETC |
| ViacomCBS vs. The Walt Disney | ViacomCBS vs. Charter Communications | ViacomCBS vs. Warner Music Group | ViacomCBS vs. Superior Plus Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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