Correlation Between RTL Group and CARSALES
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By analyzing existing cross correlation between RTL Group SA and CARSALESCOM, you can compare the effects of market volatilities on RTL Group and CARSALES 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 CARSALES. Check out your portfolio center. Please also check ongoing floating volatility patterns of RTL Group and CARSALES.
Diversification Opportunities for RTL Group and CARSALES
Excellent diversification
The 3 months correlation between RTL and CARSALES is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding RTL Group SA and CARSALESCOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARSALESCOM 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 CARSALES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARSALESCOM has no effect on the direction of RTL Group i.e., RTL Group and CARSALES go up and down completely randomly.
Pair Corralation between RTL Group and CARSALES
Assuming the 90 days trading horizon RTL Group is expected to generate 1.35 times less return on investment than CARSALES. But when comparing it to its historical volatility, RTL Group SA is 1.61 times less risky than CARSALES. It trades about 0.37 of its potential returns per unit of risk. CARSALESCOM is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,180 in CARSALESCOM on November 3, 2024 and sell it today you would earn a total of 260.00 from holding CARSALESCOM or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RTL Group SA vs. CARSALESCOM
Performance |
| Timeline |
| RTL Group SA |
| CARSALESCOM |
RTL Group and CARSALES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RTL Group and CARSALES
The main advantage of trading using opposite RTL Group and CARSALES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RTL Group position performs unexpectedly, CARSALES 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 CARSALES will offset losses from the drop in CARSALES's long position.| RTL Group vs. PARKEN Sport Entertainment | RTL Group vs. Beta Systems Software | RTL Group vs. Alfa Financial Software | RTL Group vs. USU Software AG |
| CARSALES vs. Fast Retailing Co | CARSALES vs. FAST RETAIL ADR | CARSALES vs. SIDETRADE EO 1 | CARSALES vs. TRADEDOUBLER AB SK |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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