Correlation Between RCS MediaGroup and Impala Platinum
Can any of the company-specific risk be diversified away by investing in both RCS MediaGroup and Impala Platinum 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 Impala Platinum 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 Impala Platinum Holdings, you can compare the effects of market volatilities on RCS MediaGroup and Impala Platinum 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 Impala Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCS MediaGroup and Impala Platinum.
Diversification Opportunities for RCS MediaGroup and Impala Platinum
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between RCS and Impala is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding RCS MediaGroup SpA and Impala Platinum Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impala Platinum Holdings 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 Impala Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impala Platinum Holdings has no effect on the direction of RCS MediaGroup i.e., RCS MediaGroup and Impala Platinum go up and down completely randomly.
Pair Corralation between RCS MediaGroup and Impala Platinum
Assuming the 90 days trading horizon RCS MediaGroup is expected to generate 1.2 times less return on investment than Impala Platinum. But when comparing it to its historical volatility, RCS MediaGroup SpA is 1.43 times less risky than Impala Platinum. It trades about 0.21 of its potential returns per unit of risk. Impala Platinum Holdings is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Impala Platinum Holdings on December 11, 2024 and sell it today you would earn a total of 60.00 from holding Impala Platinum Holdings or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RCS MediaGroup SpA vs. Impala Platinum Holdings
Performance |
| Timeline |
| RCS MediaGroup SpA |
| Impala Platinum Holdings |
RCS MediaGroup and Impala Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCS MediaGroup and Impala Platinum
The main advantage of trading using opposite RCS MediaGroup and Impala Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCS MediaGroup position performs unexpectedly, Impala Platinum 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 Impala Platinum will offset losses from the drop in Impala Platinum's long position.| RCS MediaGroup vs. Carsales | RCS MediaGroup vs. Nippon Light Metal | RCS MediaGroup vs. DAIDO METAL TD | RCS MediaGroup vs. PACIFIC ONLINE |
| Impala Platinum vs. GUILD ESPORTS PLC | Impala Platinum vs. NTG Nordic Transport | Impala Platinum vs. CLEAN ENERGY FUELS | Impala Platinum vs. Yuexiu Transport Infrastructure |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |