Correlation Between Grupo Carso and RCS MediaGroup
Can any of the company-specific risk be diversified away by investing in both Grupo Carso 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 Grupo Carso and RCS MediaGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and RCS MediaGroup SpA, you can compare the effects of market volatilities on Grupo Carso 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 Grupo Carso with a short position of RCS MediaGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and RCS MediaGroup.
Diversification Opportunities for Grupo Carso and RCS MediaGroup
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and RCS is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB 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 Grupo Carso 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 Grupo Carso SAB 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 Grupo Carso i.e., Grupo Carso and RCS MediaGroup go up and down completely randomly.
Pair Corralation between Grupo Carso and RCS MediaGroup
Assuming the 90 days horizon Grupo Carso SAB is expected to under-perform the RCS MediaGroup. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Carso SAB is 1.74 times less risky than RCS MediaGroup. The stock trades about -0.23 of its potential returns per unit of risk. The RCS MediaGroup SpA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 86.00 in RCS MediaGroup SpA on October 12, 2024 and sell it today you would earn a total of 0.00 from holding RCS MediaGroup SpA or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Grupo Carso SAB vs. RCS MediaGroup SpA
Performance |
Timeline |
Grupo Carso SAB |
RCS MediaGroup SpA |
Grupo Carso and RCS MediaGroup Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Carso and RCS MediaGroup
The main advantage of trading using opposite Grupo Carso and RCS MediaGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso 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.Grupo Carso vs. Compagnie Plastic Omnium | Grupo Carso vs. APPLIED MATERIALS | Grupo Carso vs. Zoom Video Communications | Grupo Carso vs. FIH MOBILE |
RCS MediaGroup vs. CHINA EDUCATION GROUP | RCS MediaGroup vs. Aluminum of | RCS MediaGroup vs. Grupo Carso SAB | RCS MediaGroup vs. Jacquet Metal Service |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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