Correlation Between Prosiebensat and RTL Group
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By analyzing existing cross correlation between Prosiebensat 1 Media and RTL Group SA, you can compare the effects of market volatilities on Prosiebensat and RTL Group 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 Prosiebensat with a short position of RTL Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosiebensat and RTL Group.
Diversification Opportunities for Prosiebensat and RTL Group
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Prosiebensat and RTL is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Prosiebensat 1 Media and RTL Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTL Group SA and Prosiebensat 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 Prosiebensat 1 Media are associated (or correlated) with RTL Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTL Group SA has no effect on the direction of Prosiebensat i.e., Prosiebensat and RTL Group go up and down completely randomly.
Pair Corralation between Prosiebensat and RTL Group
Assuming the 90 days trading horizon Prosiebensat 1 Media is expected to under-perform the RTL Group. In addition to that, Prosiebensat is 1.77 times more volatile than RTL Group SA. It trades about -0.03 of its total potential returns per unit of risk. RTL Group SA is currently generating about -0.04 per unit of volatility. If you would invest 3,500 in RTL Group SA on August 30, 2024 and sell it today you would lose (1,090) from holding RTL Group SA or give up 31.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prosiebensat 1 Media vs. RTL Group SA
Performance |
| Timeline |
| Prosiebensat 1 Media |
| RTL Group SA |
Prosiebensat and RTL Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosiebensat and RTL Group
The main advantage of trading using opposite Prosiebensat and RTL Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosiebensat position performs unexpectedly, RTL Group 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 RTL Group will offset losses from the drop in RTL Group's long position.| Prosiebensat vs. RTL GROUP UNSPADR | Prosiebensat vs. Superior Plus Corp | Prosiebensat vs. NMI Holdings | Prosiebensat vs. SIVERS SEMICONDUCTORS AB |
| RTL Group vs. WIZZ AIR HLDGUNSPADR4 | RTL Group vs. NORTHEAST UTILITIES | RTL Group vs. ALTAIR RES INC | RTL Group vs. PREMIER FOODS |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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