Correlation Between ProSiebenSat1 Media and E W
Can any of the company-specific risk be diversified away by investing in both ProSiebenSat1 Media and E W 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 E W 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 E W Scripps, you can compare the effects of market volatilities on ProSiebenSat1 Media and E W 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 E W. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProSiebenSat1 Media and E W.
Diversification Opportunities for ProSiebenSat1 Media and E W
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ProSiebenSat1 and SSP is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding ProSiebenSat1 Media AG and E W Scripps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E W Scripps 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 E W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E W Scripps has no effect on the direction of ProSiebenSat1 Media i.e., ProSiebenSat1 Media and E W go up and down completely randomly.
Pair Corralation between ProSiebenSat1 Media and E W
Assuming the 90 days horizon ProSiebenSat1 Media AG is expected to generate 0.54 times more return on investment than E W. However, ProSiebenSat1 Media AG is 1.85 times less risky than E W. It trades about -0.03 of its potential returns per unit of risk. E W Scripps is currently generating about -0.04 per unit of risk. If you would invest 221.00 in ProSiebenSat1 Media AG on August 27, 2024 and sell it today you would lose (100.00) from holding ProSiebenSat1 Media AG or give up 45.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.77% |
| Values | Daily Returns |
ProSiebenSat1 Media AG vs. E W Scripps
Performance |
| Timeline |
| ProSiebenSat1 Media |
| E W Scripps |
ProSiebenSat1 Media and E W Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProSiebenSat1 Media and E W
The main advantage of trading using opposite ProSiebenSat1 Media and E W positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProSiebenSat1 Media position performs unexpectedly, E W 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 E W will offset losses from the drop in E W'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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |