Correlation Between RTL Group and Cromwell Property
Can any of the company-specific risk be diversified away by investing in both RTL Group and Cromwell Property 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 Cromwell Property 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 Cromwell Property Group, you can compare the effects of market volatilities on RTL Group and Cromwell Property 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 Cromwell Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of RTL Group and Cromwell Property.
Diversification Opportunities for RTL Group and Cromwell Property
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RTL and Cromwell is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding RTL Group SA and Cromwell Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cromwell Property 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 Cromwell Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cromwell Property has no effect on the direction of RTL Group i.e., RTL Group and Cromwell Property go up and down completely randomly.
Pair Corralation between RTL Group and Cromwell Property
If you would invest 323.00 in RTL Group SA on November 4, 2024 and sell it today you would earn a total of 13.00 from holding RTL Group SA or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RTL Group SA vs. Cromwell Property Group
Performance |
| Timeline |
| RTL Group SA |
| Cromwell Property |
RTL Group and Cromwell Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RTL Group and Cromwell Property
The main advantage of trading using opposite RTL Group and Cromwell Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RTL Group position performs unexpectedly, Cromwell Property 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 Cromwell Property will offset losses from the drop in Cromwell Property's long position.| RTL Group vs. ITV plc | RTL Group vs. ITV PLC ADR | RTL Group vs. iHeartMedia | RTL Group vs. ProSiebenSat1 Media AG |
| Cromwell Property vs. Perseus Mining Limited | Cromwell Property vs. Viemed Healthcare | Cromwell Property vs. RadNet Inc | Cromwell Property vs. Genfit |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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