Correlation Between Teradyne and RCS MediaGroup
Can any of the company-specific risk be diversified away by investing in both Teradyne and RCS MediaGroup 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 Teradyne and RCS MediaGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teradyne and RCS MediaGroup SpA, you can compare the effects of market volatilities on Teradyne and RCS MediaGroup 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 Teradyne with a short position of RCS MediaGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teradyne and RCS MediaGroup.
Diversification Opportunities for Teradyne and RCS MediaGroup
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teradyne and RCS is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Teradyne and RCS MediaGroup SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCS MediaGroup SpA and Teradyne 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 Teradyne are associated (or correlated) with RCS MediaGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCS MediaGroup SpA has no effect on the direction of Teradyne i.e., Teradyne and RCS MediaGroup go up and down completely randomly.
Pair Corralation between Teradyne and RCS MediaGroup
Assuming the 90 days horizon Teradyne is expected to generate 1.47 times more return on investment than RCS MediaGroup. However, Teradyne is 1.47 times more volatile than RCS MediaGroup SpA. It trades about 0.15 of its potential returns per unit of risk. RCS MediaGroup SpA is currently generating about 0.19 per unit of risk. If you would invest 10,499 in Teradyne on September 12, 2024 and sell it today you would earn a total of 875.00 from holding Teradyne or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teradyne vs. RCS MediaGroup SpA
Performance |
| Timeline |
| Teradyne |
| RCS MediaGroup SpA |
Teradyne and RCS MediaGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teradyne and RCS MediaGroup
The main advantage of trading using opposite Teradyne and RCS MediaGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teradyne position performs unexpectedly, RCS MediaGroup 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 RCS MediaGroup will offset losses from the drop in RCS MediaGroup's long position.| Teradyne vs. Applied Materials | Teradyne vs. Tokyo Electron Limited | Teradyne vs. Superior Plus Corp | Teradyne vs. SIVERS SEMICONDUCTORS AB |
| RCS MediaGroup vs. X FAB Silicon Foundries | RCS MediaGroup vs. DXC Technology Co | RCS MediaGroup vs. Molson Coors Beverage | RCS MediaGroup vs. Tsingtao Brewery |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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