Correlation Between ATRESMEDIA and Prosiebensat
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA and Prosiebensat 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 ATRESMEDIA and Prosiebensat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and Prosiebensat 1 Media, you can compare the effects of market volatilities on ATRESMEDIA and Prosiebensat 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 ATRESMEDIA with a short position of Prosiebensat. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and Prosiebensat.
Diversification Opportunities for ATRESMEDIA and Prosiebensat
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between ATRESMEDIA and Prosiebensat is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and Prosiebensat 1 Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosiebensat 1 Media and ATRESMEDIA 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 ATRESMEDIA are associated (or correlated) with Prosiebensat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosiebensat 1 Media has no effect on the direction of ATRESMEDIA i.e., ATRESMEDIA and Prosiebensat go up and down completely randomly.
Pair Corralation between ATRESMEDIA and Prosiebensat
Assuming the 90 days trading horizon ATRESMEDIA is expected to generate 0.41 times more return on investment than Prosiebensat. However, ATRESMEDIA is 2.42 times less risky than Prosiebensat. It trades about 0.09 of its potential returns per unit of risk. Prosiebensat 1 Media is currently generating about 0.02 per unit of risk. If you would invest 414.00 in ATRESMEDIA on November 1, 2024 and sell it today you would earn a total of 23.00 from holding ATRESMEDIA or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. Prosiebensat 1 Media
Performance |
| Timeline |
| ATRESMEDIA |
| Prosiebensat 1 Media |
ATRESMEDIA and Prosiebensat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and Prosiebensat
The main advantage of trading using opposite ATRESMEDIA and Prosiebensat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA position performs unexpectedly, Prosiebensat 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 Prosiebensat will offset losses from the drop in Prosiebensat's long position.| ATRESMEDIA vs. UNIVMUSIC GRPADR050 | ATRESMEDIA vs. EIDESVIK OFFSHORE NK | ATRESMEDIA vs. MOVIE GAMES SA | ATRESMEDIA vs. MTY Food Group |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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