Correlation Between INDIKA ENERGY and RCS MediaGroup
Can any of the company-specific risk be diversified away by investing in both INDIKA ENERGY 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 INDIKA ENERGY and RCS MediaGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INDIKA ENERGY and RCS MediaGroup SpA, you can compare the effects of market volatilities on INDIKA ENERGY 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 INDIKA ENERGY with a short position of RCS MediaGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDIKA ENERGY and RCS MediaGroup.
Diversification Opportunities for INDIKA ENERGY and RCS MediaGroup
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INDIKA and RCS is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding INDIKA ENERGY 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 INDIKA ENERGY 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 INDIKA ENERGY 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 INDIKA ENERGY i.e., INDIKA ENERGY and RCS MediaGroup go up and down completely randomly.
Pair Corralation between INDIKA ENERGY and RCS MediaGroup
Assuming the 90 days trading horizon INDIKA ENERGY is expected to generate 2.45 times less return on investment than RCS MediaGroup. In addition to that, INDIKA ENERGY is 2.6 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 0.05 per unit of volatility. If you would invest 61.00 in RCS MediaGroup SpA on October 23, 2024 and sell it today you would earn a total of 26.00 from holding RCS MediaGroup SpA or generate 42.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
INDIKA ENERGY vs. RCS MediaGroup SpA
Performance |
| Timeline |
| INDIKA ENERGY |
| RCS MediaGroup SpA |
INDIKA ENERGY and RCS MediaGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDIKA ENERGY and RCS MediaGroup
The main advantage of trading using opposite INDIKA ENERGY and RCS MediaGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDIKA ENERGY 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.| INDIKA ENERGY vs. Sixt Leasing SE | INDIKA ENERGY vs. Webster Financial | INDIKA ENERGY vs. GRENKELEASING Dusseldorf | INDIKA ENERGY vs. SUN LIFE FINANCIAL |
| RCS MediaGroup vs. RELX PLC | RCS MediaGroup vs. Relx PLC ADR | RCS MediaGroup vs. Wolters Kluwer NV | RCS MediaGroup vs. WOLTERS KLUWER 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world |