Correlation Between Vivendi SE and RTL GROUP
Can any of the company-specific risk be diversified away by investing in both Vivendi SE and RTL GROUP 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 Vivendi SE and RTL GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivendi SE and RTL GROUP UNSPADR, you can compare the effects of market volatilities on Vivendi SE and RTL GROUP 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 Vivendi SE with a short position of RTL GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivendi SE and RTL GROUP.
Diversification Opportunities for Vivendi SE and RTL GROUP
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vivendi and RTL is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Vivendi SE and RTL GROUP UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTL GROUP UNSPADR and Vivendi SE 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 Vivendi SE are associated (or correlated) with RTL GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTL GROUP UNSPADR has no effect on the direction of Vivendi SE i.e., Vivendi SE and RTL GROUP go up and down completely randomly.
Pair Corralation between Vivendi SE and RTL GROUP
Assuming the 90 days horizon Vivendi SE is expected to generate 0.43 times more return on investment than RTL GROUP. However, Vivendi SE is 2.35 times less risky than RTL GROUP. It trades about -0.34 of its potential returns per unit of risk. RTL GROUP UNSPADR is currently generating about -0.2 per unit of risk. If you would invest 974.00 in Vivendi SE on September 1, 2024 and sell it today you would lose (112.00) from holding Vivendi SE or give up 11.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivendi SE vs. RTL GROUP UNSPADR
Performance |
| Timeline |
| Vivendi SE |
| RTL GROUP UNSPADR |
Vivendi SE and RTL GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivendi SE and RTL GROUP
The main advantage of trading using opposite Vivendi SE and RTL GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivendi SE position performs unexpectedly, RTL GROUP 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 RTL GROUP will offset losses from the drop in RTL GROUP's long position.| Vivendi SE vs. Guidewire Software | Vivendi SE vs. AXWAY SOFTWARE EO | Vivendi SE vs. AEGEAN AIRLINES | Vivendi SE vs. Carsales |
| RTL GROUP vs. WIZZ AIR HLDGUNSPADR4 | RTL GROUP vs. Taiwan Semiconductor Manufacturing | RTL GROUP vs. GEAR4MUSIC LS 10 | RTL GROUP vs. Ryanair Holdings plc |
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 CEOs Directory module to screen CEOs from public companies around the world.
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