Correlation Between ProSiebenSat1 Media and American Environmental
Can any of the company-specific risk be diversified away by investing in both ProSiebenSat1 Media and American Environmental 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 American Environmental 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 American Environmental, you can compare the effects of market volatilities on ProSiebenSat1 Media and American Environmental 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 American Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProSiebenSat1 Media and American Environmental.
Diversification Opportunities for ProSiebenSat1 Media and American Environmental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProSiebenSat1 and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProSiebenSat1 Media AG and American Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Environmental 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 American Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Environmental has no effect on the direction of ProSiebenSat1 Media i.e., ProSiebenSat1 Media and American Environmental go up and down completely randomly.
Pair Corralation between ProSiebenSat1 Media and American Environmental
If you would invest 130.00 in ProSiebenSat1 Media AG on November 4, 2024 and sell it today you would earn a total of 10.00 from holding ProSiebenSat1 Media AG or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
ProSiebenSat1 Media AG vs. American Environmental
Performance |
| Timeline |
| ProSiebenSat1 Media |
| American Environmental |
ProSiebenSat1 Media and American Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProSiebenSat1 Media and American Environmental
The main advantage of trading using opposite ProSiebenSat1 Media and American Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProSiebenSat1 Media position performs unexpectedly, American Environmental 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 American Environmental will offset losses from the drop in American Environmental'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 |
| American Environmental vs. Hochschild Mining PLC | American Environmental vs. Boyd Gaming | American Environmental vs. Roblox Corp | American Environmental vs. Playtika Holding Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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