Correlation Between Fossil and RCS MediaGroup
Can any of the company-specific risk be diversified away by investing in both Fossil and RCS MediaGroup 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 Fossil and RCS MediaGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fossil Group and RCS MediaGroup SpA, you can compare the effects of market volatilities on Fossil and RCS MediaGroup 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 Fossil with a short position of RCS MediaGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fossil and RCS MediaGroup.
Diversification Opportunities for Fossil and RCS MediaGroup
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fossil and RCS is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Fossil Group and RCS MediaGroup SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCS MediaGroup SpA and Fossil 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 Fossil Group are associated (or correlated) with RCS MediaGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCS MediaGroup SpA has no effect on the direction of Fossil i.e., Fossil and RCS MediaGroup go up and down completely randomly.
Pair Corralation between Fossil and RCS MediaGroup
Given the investment horizon of 90 days Fossil Group is expected to under-perform the RCS MediaGroup. In addition to that, Fossil is 1.47 times more volatile than RCS MediaGroup SpA. It trades about -0.01 of its total potential returns per unit of risk. RCS MediaGroup SpA is currently generating about 0.03 per unit of volatility. If you would invest 83.00 in RCS MediaGroup SpA on August 31, 2024 and sell it today you would earn a total of 6.00 from holding RCS MediaGroup SpA or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 59.14% |
| Values | Daily Returns |
Fossil Group vs. RCS MediaGroup SpA
Performance |
| Timeline |
| Fossil Group |
| RCS MediaGroup SpA |
Fossil and RCS MediaGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fossil and RCS MediaGroup
The main advantage of trading using opposite Fossil and RCS MediaGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fossil position performs unexpectedly, RCS MediaGroup 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 RCS MediaGroup will offset losses from the drop in RCS MediaGroup's long position.| Fossil vs. Lanvin Group Holdings | Fossil vs. Signet Jewelers | Fossil vs. Tapestry | Fossil vs. Capri Holdings |
| RCS MediaGroup vs. Slate Office REIT | RCS MediaGroup vs. HUMANA INC | RCS MediaGroup vs. Aquagold International | RCS MediaGroup vs. Barloworld Ltd ADR |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |