Correlation Between ProSiebenSat1 Media and InCapta
Can any of the company-specific risk be diversified away by investing in both ProSiebenSat1 Media and InCapta 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 ProSiebenSat1 Media and InCapta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProSiebenSat1 Media AG and InCapta, you can compare the effects of market volatilities on ProSiebenSat1 Media and InCapta 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 ProSiebenSat1 Media with a short position of InCapta. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProSiebenSat1 Media and InCapta.
Diversification Opportunities for ProSiebenSat1 Media and InCapta
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between ProSiebenSat1 and InCapta is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding ProSiebenSat1 Media AG and InCapta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InCapta and ProSiebenSat1 Media 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 ProSiebenSat1 Media AG are associated (or correlated) with InCapta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InCapta has no effect on the direction of ProSiebenSat1 Media i.e., ProSiebenSat1 Media and InCapta go up and down completely randomly.
Pair Corralation between ProSiebenSat1 Media and InCapta
If you would invest 251.00 in InCapta on October 23, 2024 and sell it today you would earn a total of 0.00 from holding InCapta or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
ProSiebenSat1 Media AG vs. InCapta
Performance |
| Timeline |
| ProSiebenSat1 Media |
| InCapta |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProSiebenSat1 Media and InCapta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProSiebenSat1 Media and InCapta
The main advantage of trading using opposite ProSiebenSat1 Media and InCapta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProSiebenSat1 Media position performs unexpectedly, InCapta 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 InCapta will offset losses from the drop in InCapta's long position.| ProSiebenSat1 Media vs. RTL Group SA | ProSiebenSat1 Media vs. iHeartMedia | ProSiebenSat1 Media vs. ITV PLC ADR | 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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