Correlation Between Intermediate Capital and Prosiebensat
Can any of the company-specific risk be diversified away by investing in both Intermediate Capital and Prosiebensat 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 Intermediate Capital and Prosiebensat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermediate Capital Group and Prosiebensat 1 Media, you can compare the effects of market volatilities on Intermediate Capital and Prosiebensat 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 Intermediate Capital with a short position of Prosiebensat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Capital and Prosiebensat.
Diversification Opportunities for Intermediate Capital and Prosiebensat
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Intermediate and Prosiebensat is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Capital Group and Prosiebensat 1 Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosiebensat 1 Media and Intermediate Capital 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 Intermediate Capital Group are associated (or correlated) with Prosiebensat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosiebensat 1 Media has no effect on the direction of Intermediate Capital i.e., Intermediate Capital and Prosiebensat go up and down completely randomly.
Pair Corralation between Intermediate Capital and Prosiebensat
Assuming the 90 days trading horizon Intermediate Capital Group is expected to generate 0.94 times more return on investment than Prosiebensat. However, Intermediate Capital Group is 1.07 times less risky than Prosiebensat. It trades about 0.01 of its potential returns per unit of risk. Prosiebensat 1 Media is currently generating about -0.15 per unit of risk. If you would invest 211,600 in Intermediate Capital Group on September 2, 2024 and sell it today you would earn a total of 200.00 from holding Intermediate Capital Group or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermediate Capital Group vs. Prosiebensat 1 Media
Performance |
| Timeline |
| Intermediate Capital |
| Prosiebensat 1 Media |
Intermediate Capital and Prosiebensat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Capital and Prosiebensat
The main advantage of trading using opposite Intermediate Capital and Prosiebensat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Capital position performs unexpectedly, Prosiebensat 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 Prosiebensat will offset losses from the drop in Prosiebensat's long position.| Intermediate Capital vs. Scandinavian Tobacco Group | Intermediate Capital vs. Southern Copper Corp | Intermediate Capital vs. Trainline Plc | Intermediate Capital vs. Bisichi Mining PLC |
| Prosiebensat vs. Uniper SE | Prosiebensat vs. Mulberry Group PLC | Prosiebensat vs. London Security Plc | Prosiebensat vs. Triad Group 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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