Correlation Between Fonu2 and ProSiebenSat1 Media

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Fonu2 and ProSiebenSat1 Media 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 Fonu2 and ProSiebenSat1 Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonu2 Inc and ProSiebenSat1 Media AG, you can compare the effects of market volatilities on Fonu2 and ProSiebenSat1 Media 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 Fonu2 with a short position of ProSiebenSat1 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonu2 and ProSiebenSat1 Media.

Diversification Opportunities for Fonu2 and ProSiebenSat1 Media

0.02
  Correlation Coefficient

Significant diversification

The 3 months correlation between Fonu2 and ProSiebenSat1 is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Fonu2 Inc and ProSiebenSat1 Media AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProSiebenSat1 Media and Fonu2 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 Fonu2 Inc are associated (or correlated) with ProSiebenSat1 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProSiebenSat1 Media has no effect on the direction of Fonu2 i.e., Fonu2 and ProSiebenSat1 Media go up and down completely randomly.

Pair Corralation between Fonu2 and ProSiebenSat1 Media

If you would invest  0.01  in Fonu2 Inc on August 30, 2024 and sell it today you would earn a total of  0.00  from holding Fonu2 Inc or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Fonu2 Inc  vs.  ProSiebenSat1 Media AG

 Performance 
       Timeline  
Fonu2 Inc 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Fonu2 Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Fonu2 unveiled solid returns over the last few months and may actually be approaching a breakup point.
ProSiebenSat1 Media 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ProSiebenSat1 Media AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Fonu2 and ProSiebenSat1 Media Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fonu2 and ProSiebenSat1 Media

The main advantage of trading using opposite Fonu2 and ProSiebenSat1 Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonu2 position performs unexpectedly, ProSiebenSat1 Media 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 ProSiebenSat1 Media will offset losses from the drop in ProSiebenSat1 Media's long position.
Fonu2 vs. Harrison Vickers and
Fonu2 vs. Gncc Capital
Fonu2 vs. Indo Global Exchange
Fonu2 vs. Active Health Foods
The idea behind Fonu2 Inc and ProSiebenSat1 Media AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
ProSiebenSat1 Media vs. RTL Group SA
ProSiebenSat1 Media vs. iHeartMedia
ProSiebenSat1 Media vs. ITV PLC ADR
ProSiebenSat1 Media vs. RTL Group SA
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY