Correlation Between Prosiebensat and SIKA AG
Can any of the company-specific risk be diversified away by investing in both Prosiebensat and SIKA AG 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 Prosiebensat and SIKA AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosiebensat 1 Media and SIKA AG UNSPADR, you can compare the effects of market volatilities on Prosiebensat and SIKA AG 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 SIKA AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosiebensat and SIKA AG.
Diversification Opportunities for Prosiebensat and SIKA AG
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Prosiebensat and SIKA is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Prosiebensat 1 Media and SIKA AG UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIKA AG UNSPADR 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 SIKA AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIKA AG UNSPADR has no effect on the direction of Prosiebensat i.e., Prosiebensat and SIKA AG go up and down completely randomly.
Pair Corralation between Prosiebensat and SIKA AG
Assuming the 90 days trading horizon Prosiebensat 1 Media is expected to generate 1.14 times more return on investment than SIKA AG. However, Prosiebensat is 1.14 times more volatile than SIKA AG UNSPADR. It trades about 0.04 of its potential returns per unit of risk. SIKA AG UNSPADR is currently generating about -0.05 per unit of risk. If you would invest 536.00 in Prosiebensat 1 Media on November 6, 2024 and sell it today you would earn a total of 21.00 from holding Prosiebensat 1 Media or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Prosiebensat 1 Media vs. SIKA AG UNSPADR
Performance |
| Timeline |
| Prosiebensat 1 Media |
| SIKA AG UNSPADR |
Prosiebensat and SIKA AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosiebensat and SIKA AG
The main advantage of trading using opposite Prosiebensat and SIKA AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosiebensat position performs unexpectedly, SIKA AG 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 SIKA AG will offset losses from the drop in SIKA AG's long position.| Prosiebensat vs. Solstad Offshore ASA | Prosiebensat vs. Air Lease | Prosiebensat vs. Adtalem Global Education | Prosiebensat vs. SOLSTAD OFFSHORE NK |
| SIKA AG vs. BII Railway Transportation | SIKA AG vs. PLAYMATES TOYS | SIKA AG vs. PARKEN Sport Entertainment | SIKA AG vs. Yuexiu Transport Infrastructure |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |