Correlation Between PT Global and RCS MediaGroup

Can any of the company-specific risk be diversified away by investing in both PT Global 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 PT Global and RCS MediaGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PT Global Mediacom and RCS MediaGroup SpA, you can compare the effects of market volatilities on PT Global 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 PT Global with a short position of RCS MediaGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Global and RCS MediaGroup.

Diversification Opportunities for PT Global and RCS MediaGroup

-0.86

Correlation Coefficient

PT Global  RCS MediaGroup

Pay attention - limited upside

The 3 months correlation between 06L and RCS is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding PT Global Mediacom 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 PT Global 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 PT Global Mediacom 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 PT Global i.e., PT Global and RCS MediaGroup go up and down completely randomly.

Pair Corralation between PT Global and RCS MediaGroup

Assuming the 90 days trading horizon PT Global Mediacom is expected to under-perform the RCS MediaGroup. In addition to that, PT Global is 4.09 times more volatile than RCS MediaGroup SpA. It trades about -0.08 of its total potential returns per unit of risk. RCS MediaGroup SpA is currently generating about 0.14 per unit of volatility. If you would invest  86.00  in RCS MediaGroup SpA on December 19, 2024 and sell it today you would earn a total of  16.00  from holding RCS MediaGroup SpA or generate 18.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.33%
Values	Daily Returns

PT Global Mediacom  vs.  RCS MediaGroup SpA

PT Global Mediacom

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Global Mediacom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

RCS MediaGroup SpA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in RCS MediaGroup SpA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, RCS MediaGroup reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Global and RCS MediaGroup

The main advantage of trading using opposite PT Global and RCS MediaGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Global 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.

The idea behind PT Global Mediacom and RCS MediaGroup SpA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.