Correlation Between RCS MediaGroup and Compugroup Medical
Can any of the company-specific risk be diversified away by investing in both RCS MediaGroup and Compugroup Medical 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 RCS MediaGroup and Compugroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RCS MediaGroup SpA and Compugroup Medical SE, you can compare the effects of market volatilities on RCS MediaGroup and Compugroup Medical 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 Compugroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCS MediaGroup and Compugroup Medical.
Diversification Opportunities for RCS MediaGroup and Compugroup Medical
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between RCS and Compugroup is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding RCS MediaGroup SpA and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical 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 Compugroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compugroup Medical has no effect on the direction of RCS MediaGroup i.e., RCS MediaGroup and Compugroup Medical go up and down completely randomly.
Pair Corralation between RCS MediaGroup and Compugroup Medical
Assuming the 90 days trading horizon RCS MediaGroup SpA is expected to generate 0.49 times more return on investment than Compugroup Medical. However, RCS MediaGroup SpA is 2.03 times less risky than Compugroup Medical. It trades about 0.04 of its potential returns per unit of risk. Compugroup Medical SE is currently generating about -0.1 per unit of risk. If you would invest 76.00 in RCS MediaGroup SpA on September 3, 2024 and sell it today you would earn a total of 6.00 from holding RCS MediaGroup SpA or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RCS MediaGroup SpA vs. Compugroup Medical SE
Performance |
| Timeline |
| RCS MediaGroup SpA |
| Compugroup Medical |
RCS MediaGroup and Compugroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCS MediaGroup and Compugroup Medical
The main advantage of trading using opposite RCS MediaGroup and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCS MediaGroup position performs unexpectedly, Compugroup Medical 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 Compugroup Medical will offset losses from the drop in Compugroup Medical's long position.| RCS MediaGroup vs. Superior Plus Corp | RCS MediaGroup vs. NMI Holdings | RCS MediaGroup vs. Origin Agritech | RCS MediaGroup vs. SIVERS SEMICONDUCTORS AB |
| Compugroup Medical vs. ATRESMEDIA | Compugroup Medical vs. Corsair Gaming | Compugroup Medical vs. Hollywood Bowl Group | Compugroup Medical vs. RCS MediaGroup SpA |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |