Correlation Between METTLER TOLEDO and ProSiebenSat1 Media
Can any of the company-specific risk be diversified away by investing in both METTLER TOLEDO and ProSiebenSat1 Media 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 METTLER TOLEDO and ProSiebenSat1 Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between METTLER TOLEDO INTL and ProSiebenSat1 Media SE, you can compare the effects of market volatilities on METTLER TOLEDO and ProSiebenSat1 Media 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 METTLER TOLEDO with a short position of ProSiebenSat1 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of METTLER TOLEDO and ProSiebenSat1 Media.
Diversification Opportunities for METTLER TOLEDO and ProSiebenSat1 Media
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between METTLER and ProSiebenSat1 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding METTLER TOLEDO INTL and ProSiebenSat1 Media SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProSiebenSat1 Media and METTLER TOLEDO 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 METTLER TOLEDO INTL are associated (or correlated) with ProSiebenSat1 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProSiebenSat1 Media has no effect on the direction of METTLER TOLEDO i.e., METTLER TOLEDO and ProSiebenSat1 Media go up and down completely randomly.
Pair Corralation between METTLER TOLEDO and ProSiebenSat1 Media
Assuming the 90 days trading horizon METTLER TOLEDO INTL is expected to generate 0.73 times more return on investment than ProSiebenSat1 Media. However, METTLER TOLEDO INTL is 1.36 times less risky than ProSiebenSat1 Media. It trades about 0.3 of its potential returns per unit of risk. ProSiebenSat1 Media SE is currently generating about 0.03 per unit of risk. If you would invest 118,400 in METTLER TOLEDO INTL on October 23, 2024 and sell it today you would earn a total of 7,350 from holding METTLER TOLEDO INTL or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
METTLER TOLEDO INTL vs. ProSiebenSat1 Media SE
Performance |
| Timeline |
| METTLER TOLEDO INTL |
| ProSiebenSat1 Media |
METTLER TOLEDO and ProSiebenSat1 Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with METTLER TOLEDO and ProSiebenSat1 Media
The main advantage of trading using opposite METTLER TOLEDO and ProSiebenSat1 Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if METTLER TOLEDO position performs unexpectedly, ProSiebenSat1 Media 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 ProSiebenSat1 Media will offset losses from the drop in ProSiebenSat1 Media's long position.| METTLER TOLEDO vs. AEON METALS LTD | METTLER TOLEDO vs. Siamgas And Petrochemicals | METTLER TOLEDO vs. Forsys Metals Corp | METTLER TOLEDO vs. AEON STORES |
| ProSiebenSat1 Media vs. VIVENDI UNSPONARD EO | ProSiebenSat1 Media vs. News Corporation | ProSiebenSat1 Media vs. News Corporation | ProSiebenSat1 Media vs. RTL Group SA |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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