Correlation Between PREMIER FOODS and RTL Group
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By analyzing existing cross correlation between PREMIER FOODS and RTL Group SA, you can compare the effects of market volatilities on PREMIER FOODS 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 PREMIER FOODS with a short position of RTL Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PREMIER FOODS and RTL Group.
Diversification Opportunities for PREMIER FOODS and RTL Group
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between PREMIER and RTL is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding PREMIER FOODS 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 PREMIER FOODS 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 PREMIER FOODS 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 PREMIER FOODS i.e., PREMIER FOODS and RTL Group go up and down completely randomly.
Pair Corralation between PREMIER FOODS and RTL Group
Assuming the 90 days trading horizon PREMIER FOODS is expected to generate 0.83 times more return on investment than RTL Group. However, PREMIER FOODS is 1.21 times less risky than RTL Group. It trades about 0.1 of its potential returns per unit of risk. RTL Group SA is currently generating about -0.11 per unit of risk. If you would invest 200.00 in PREMIER FOODS on September 1, 2024 and sell it today you would earn a total of 36.00 from holding PREMIER FOODS or generate 18.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.24% |
| Values | Daily Returns |
PREMIER FOODS vs. RTL Group SA
Performance |
| Timeline |
| PREMIER FOODS |
| RTL Group SA |
PREMIER FOODS and RTL Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PREMIER FOODS and RTL Group
The main advantage of trading using opposite PREMIER FOODS and RTL Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PREMIER FOODS 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.| PREMIER FOODS vs. SIVERS SEMICONDUCTORS AB | PREMIER FOODS vs. Darden Restaurants | PREMIER FOODS vs. Reliance Steel Aluminum | PREMIER FOODS vs. Q2M Managementberatung AG |
| RTL Group vs. Performance Food Group | RTL Group vs. Mitsubishi Gas Chemical | RTL Group vs. PREMIER FOODS | RTL Group vs. CHEMICAL INDUSTRIES |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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