Correlation Between RCS MediaGroup and AMERICAN
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By analyzing existing cross correlation between RCS MediaGroup SpA and AMERICAN EXPRESS CR, you can compare the effects of market volatilities on RCS MediaGroup and AMERICAN 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 RCS MediaGroup with a short position of AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCS MediaGroup and AMERICAN.
Diversification Opportunities for RCS MediaGroup and AMERICAN
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RCS and AMERICAN is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding RCS MediaGroup SpA and AMERICAN EXPRESS CR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS and RCS MediaGroup 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 RCS MediaGroup SpA are associated (or correlated) with AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS has no effect on the direction of RCS MediaGroup i.e., RCS MediaGroup and AMERICAN go up and down completely randomly.
Pair Corralation between RCS MediaGroup and AMERICAN
Assuming the 90 days horizon RCS MediaGroup SpA is expected to generate 8.66 times more return on investment than AMERICAN. However, RCS MediaGroup is 8.66 times more volatile than AMERICAN EXPRESS CR. It trades about 0.04 of its potential returns per unit of risk. AMERICAN EXPRESS CR is currently generating about 0.01 per unit of risk. If you would invest 68.00 in RCS MediaGroup SpA on September 14, 2024 and sell it today you would earn a total of 25.00 from holding RCS MediaGroup SpA or generate 36.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 70.4% |
| Values | Daily Returns |
RCS MediaGroup SpA vs. AMERICAN EXPRESS CR
Performance |
| Timeline |
| RCS MediaGroup SpA |
| AMERICAN EXPRESS |
RCS MediaGroup and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCS MediaGroup and AMERICAN
The main advantage of trading using opposite RCS MediaGroup and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCS MediaGroup position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.| RCS MediaGroup vs. Legible | RCS MediaGroup vs. Sylvania Platinum Limited | RCS MediaGroup vs. Thunderbird Entertainment Group | RCS MediaGroup vs. PAX Global Technology |
| AMERICAN vs. Coupang LLC | AMERICAN vs. Encore Capital Group | AMERICAN vs. National Vision Holdings | AMERICAN vs. Commonwealth Bank of |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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