Correlation Between Roebuck Food and Prosiebensat
Can any of the company-specific risk be diversified away by investing in both Roebuck Food and Prosiebensat 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 Roebuck Food and Prosiebensat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roebuck Food Group and Prosiebensat 1 Media, you can compare the effects of market volatilities on Roebuck Food and Prosiebensat 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 Roebuck Food with a short position of Prosiebensat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roebuck Food and Prosiebensat.
Diversification Opportunities for Roebuck Food and Prosiebensat
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Roebuck and Prosiebensat is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Roebuck Food Group and Prosiebensat 1 Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosiebensat 1 Media and Roebuck Food 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 Roebuck Food Group are associated (or correlated) with Prosiebensat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosiebensat 1 Media has no effect on the direction of Roebuck Food i.e., Roebuck Food and Prosiebensat go up and down completely randomly.
Pair Corralation between Roebuck Food and Prosiebensat
Assuming the 90 days trading horizon Roebuck Food is expected to generate 2.95 times less return on investment than Prosiebensat. But when comparing it to its historical volatility, Roebuck Food Group is 3.3 times less risky than Prosiebensat. It trades about 0.22 of its potential returns per unit of risk. Prosiebensat 1 Media is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 514.00 in Prosiebensat 1 Media on November 6, 2024 and sell it today you would earn a total of 44.00 from holding Prosiebensat 1 Media or generate 8.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Roebuck Food Group vs. Prosiebensat 1 Media
Performance |
| Timeline |
| Roebuck Food Group |
| Prosiebensat 1 Media |
Roebuck Food and Prosiebensat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roebuck Food and Prosiebensat
The main advantage of trading using opposite Roebuck Food and Prosiebensat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roebuck Food position performs unexpectedly, Prosiebensat 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 Prosiebensat will offset losses from the drop in Prosiebensat's long position.| Roebuck Food vs. Applied Materials | Roebuck Food vs. Impax Asset Management | Roebuck Food vs. Batm Advanced Communications | Roebuck Food vs. Cairo Communication SpA |
| Prosiebensat vs. Zinc Media Group | Prosiebensat vs. XLMedia PLC | Prosiebensat vs. Hollywood Bowl Group | Prosiebensat vs. Universal Display 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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