Correlation Between RTL Group and News
Specify exactly 2 symbols:
By analyzing existing cross correlation between RTL Group SA and News Corporation, you can compare the effects of market volatilities on RTL Group and News 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 News. Check out your portfolio center. Please also check ongoing floating volatility patterns of RTL Group and News.
Diversification Opportunities for RTL Group and News
Pay attention - limited upside
The 3 months correlation between RTL and News is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding RTL Group SA and News Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on News 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 News. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of News has no effect on the direction of RTL Group i.e., RTL Group and News go up and down completely randomly.
Pair Corralation between RTL Group and News
Assuming the 90 days trading horizon RTL Group SA is expected to under-perform the News. In addition to that, RTL Group is 1.97 times more volatile than News Corporation. It trades about -0.25 of its total potential returns per unit of risk. News Corporation is currently generating about 0.31 per unit of volatility. If you would invest 2,480 in News Corporation on September 1, 2024 and sell it today you would earn a total of 280.00 from holding News Corporation or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RTL Group SA vs. News Corp.
Performance |
| Timeline |
| RTL Group SA |
| News |
RTL Group and News Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RTL Group and News
The main advantage of trading using opposite RTL Group and News positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RTL Group position performs unexpectedly, News 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 News will offset losses from the drop in News' long position.| RTL Group vs. Performance Food Group | RTL Group vs. Mitsubishi Gas Chemical | RTL Group vs. PREMIER FOODS | RTL Group vs. CHEMICAL INDUSTRIES |
| News vs. Superior Plus Corp | News vs. NMI Holdings | News vs. Origin Agritech | News vs. SIVERS SEMICONDUCTORS AB |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |