Correlation Between FOX CORP and Prosiebensat
Can any of the company-specific risk be diversified away by investing in both FOX CORP 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 FOX CORP and Prosiebensat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOX P B and Prosiebensat 1 Media, you can compare the effects of market volatilities on FOX CORP 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 FOX CORP with a short position of Prosiebensat. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOX CORP and Prosiebensat.
Diversification Opportunities for FOX CORP and Prosiebensat
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FOX and Prosiebensat is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding FOX P B 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 FOX CORP 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 FOX P B 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 FOX CORP i.e., FOX CORP and Prosiebensat go up and down completely randomly.
Pair Corralation between FOX CORP and Prosiebensat
Assuming the 90 days trading horizon FOX P B is expected to generate 0.71 times more return on investment than Prosiebensat. However, FOX P B is 1.41 times less risky than Prosiebensat. It trades about 0.18 of its potential returns per unit of risk. Prosiebensat 1 Media is currently generating about -0.17 per unit of risk. If you would invest 2,877 in FOX P B on September 1, 2024 and sell it today you would earn a total of 1,243 from holding FOX P B or generate 43.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
FOX P B vs. Prosiebensat 1 Media
Performance |
| Timeline |
| FOX CORP |
| Prosiebensat 1 Media |
FOX CORP and Prosiebensat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOX CORP and Prosiebensat
The main advantage of trading using opposite FOX CORP and Prosiebensat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOX CORP 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.| FOX CORP vs. Superior Plus Corp | FOX CORP vs. NMI Holdings | FOX CORP vs. Origin Agritech | FOX CORP vs. SIVERS SEMICONDUCTORS AB |
| Prosiebensat vs. Superior Plus Corp | Prosiebensat vs. NMI Holdings | Prosiebensat vs. Origin Agritech | Prosiebensat vs. SIVERS SEMICONDUCTORS AB |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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