Correlation Between RCS MediaGroup and Qingdao Haier
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By analyzing existing cross correlation between RCS MediaGroup SpA and Qingdao Haier Co, you can compare the effects of market volatilities on RCS MediaGroup and Qingdao Haier 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 RCS MediaGroup with a short position of Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCS MediaGroup and Qingdao Haier.
Diversification Opportunities for RCS MediaGroup and Qingdao Haier
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RCS and Qingdao is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding RCS MediaGroup SpA and Qingdao Haier Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Haier and RCS MediaGroup 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 RCS MediaGroup SpA are associated (or correlated) with Qingdao Haier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Haier has no effect on the direction of RCS MediaGroup i.e., RCS MediaGroup and Qingdao Haier go up and down completely randomly.
Pair Corralation between RCS MediaGroup and Qingdao Haier
Assuming the 90 days trading horizon RCS MediaGroup SpA is expected to generate 0.99 times more return on investment than Qingdao Haier. However, RCS MediaGroup SpA is 1.01 times less risky than Qingdao Haier. It trades about 0.19 of its potential returns per unit of risk. Qingdao Haier Co is currently generating about 0.12 per unit of risk. If you would invest 78.00 in RCS MediaGroup SpA on September 12, 2024 and sell it today you would earn a total of 6.00 from holding RCS MediaGroup SpA or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RCS MediaGroup SpA vs. Qingdao Haier Co
Performance |
| Timeline |
| RCS MediaGroup SpA |
| Qingdao Haier |
RCS MediaGroup and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCS MediaGroup and Qingdao Haier
The main advantage of trading using opposite RCS MediaGroup and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCS MediaGroup position performs unexpectedly, Qingdao Haier 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 Qingdao Haier will offset losses from the drop in Qingdao Haier's long position.| RCS MediaGroup vs. X FAB Silicon Foundries | RCS MediaGroup vs. DXC Technology Co | RCS MediaGroup vs. Molson Coors Beverage | RCS MediaGroup vs. Tsingtao Brewery |
| Qingdao Haier vs. Qingdao Haier Co | Qingdao Haier vs. Mohawk Industries | Qingdao Haier vs. SEB SA | Qingdao Haier vs. Derwent London PLC |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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