Correlation Between Brockhaus Capital and RTL Group
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By analyzing existing cross correlation between Brockhaus Capital Management and RTL Group SA, you can compare the effects of market volatilities on Brockhaus Capital 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 Brockhaus Capital with a short position of RTL Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and RTL Group.
Diversification Opportunities for Brockhaus Capital and RTL Group
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brockhaus and RTL is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management and RTL Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTL Group SA and Brockhaus Capital 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 Brockhaus Capital Management 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 SA has no effect on the direction of Brockhaus Capital i.e., Brockhaus Capital and RTL Group go up and down completely randomly.
Pair Corralation between Brockhaus Capital and RTL Group
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to under-perform the RTL Group. In addition to that, Brockhaus Capital is 1.87 times more volatile than RTL Group SA. It trades about -0.1 of its total potential returns per unit of risk. RTL Group SA is currently generating about 0.31 per unit of volatility. If you would invest 2,645 in RTL Group SA on October 23, 2024 and sell it today you would earn a total of 145.00 from holding RTL Group SA or generate 5.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 94.12% |
Values | Daily Returns |
Brockhaus Capital Management vs. RTL Group SA
Performance |
Timeline |
Brockhaus Capital |
RTL Group SA |
Brockhaus Capital and RTL Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Brockhaus Capital and RTL Group
The main advantage of trading using opposite Brockhaus Capital and RTL Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital 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.Brockhaus Capital vs. GigaMedia | Brockhaus Capital vs. VARIOUS EATERIES LS | Brockhaus Capital vs. Grupo Media Capital | Brockhaus Capital vs. GungHo Online Entertainment |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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