Correlation Between IHH Healthcare and RCS MediaGroup
Can any of the company-specific risk be diversified away by investing in both IHH Healthcare 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 IHH Healthcare and RCS MediaGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHH Healthcare Berhad and RCS MediaGroup SpA, you can compare the effects of market volatilities on IHH Healthcare 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 IHH Healthcare with a short position of RCS MediaGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHH Healthcare and RCS MediaGroup.
Diversification Opportunities for IHH Healthcare and RCS MediaGroup
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IHH and RCS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IHH Healthcare Berhad 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 IHH Healthcare 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 IHH Healthcare Berhad 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 IHH Healthcare i.e., IHH Healthcare and RCS MediaGroup go up and down completely randomly.
Pair Corralation between IHH Healthcare and RCS MediaGroup
Assuming the 90 days horizon IHH Healthcare is expected to generate 15.18 times less return on investment than RCS MediaGroup. But when comparing it to its historical volatility, IHH Healthcare Berhad is 6.07 times less risky than RCS MediaGroup. It trades about 0.03 of its potential returns per unit of risk. RCS MediaGroup SpA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 68.00 in RCS MediaGroup SpA on September 12, 2024 and sell it today you would earn a total of 25.00 from holding RCS MediaGroup SpA or generate 36.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.73% |
| Values | Daily Returns |
IHH Healthcare Berhad vs. RCS MediaGroup SpA
Performance |
| Timeline |
| IHH Healthcare Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| RCS MediaGroup SpA |
IHH Healthcare and RCS MediaGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHH Healthcare and RCS MediaGroup
The main advantage of trading using opposite IHH Healthcare and RCS MediaGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHH Healthcare 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.| IHH Healthcare vs. RCS MediaGroup SpA | IHH Healthcare vs. Emerson Radio | IHH Healthcare vs. Mediag3 | IHH Healthcare vs. Xponential Fitness |
| RCS MediaGroup vs. Legible | RCS MediaGroup vs. Sylvania Platinum Limited | RCS MediaGroup vs. Thunderbird Entertainment Group | RCS MediaGroup vs. PAX Global Technology |
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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