Correlation Between RTL Group and Beasley Broadcast
Can any of the company-specific risk be diversified away by investing in both RTL Group and Beasley Broadcast 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 RTL Group and Beasley Broadcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RTL Group SA and Beasley Broadcast Group, you can compare the effects of market volatilities on RTL Group and Beasley Broadcast 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 RTL Group with a short position of Beasley Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of RTL Group and Beasley Broadcast.
Diversification Opportunities for RTL Group and Beasley Broadcast
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between RTL and Beasley is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding RTL Group SA and Beasley Broadcast Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beasley Broadcast and RTL Group 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 RTL Group SA are associated (or correlated) with Beasley Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beasley Broadcast has no effect on the direction of RTL Group i.e., RTL Group and Beasley Broadcast go up and down completely randomly.
Pair Corralation between RTL Group and Beasley Broadcast
Assuming the 90 days horizon RTL Group SA is expected to generate 0.39 times more return on investment than Beasley Broadcast. However, RTL Group SA is 2.55 times less risky than Beasley Broadcast. It trades about -0.27 of its potential returns per unit of risk. Beasley Broadcast Group is currently generating about -0.33 per unit of risk. If you would invest 325.00 in RTL Group SA on August 28, 2024 and sell it today you would lose (36.00) from holding RTL Group SA or give up 11.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RTL Group SA vs. Beasley Broadcast Group
Performance |
| Timeline |
| RTL Group SA |
| Beasley Broadcast |
RTL Group and Beasley Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RTL Group and Beasley Broadcast
The main advantage of trading using opposite RTL Group and Beasley Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RTL Group position performs unexpectedly, Beasley Broadcast 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 Beasley Broadcast will offset losses from the drop in Beasley Broadcast's long position.| RTL Group vs. ITV plc | RTL Group vs. ITV PLC ADR | RTL Group vs. iHeartMedia | RTL Group vs. ProSiebenSat1 Media AG |
| Beasley Broadcast vs. ProSiebenSat1 Media AG | Beasley Broadcast vs. RTL Group SA | Beasley Broadcast vs. Mediaco Holding | Beasley Broadcast vs. iHeartMedia |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |