Correlation Between ProSiebenSat1 Media and Grayscale Decentralized

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Can any of the company-specific risk be diversified away by investing in both ProSiebenSat1 Media and Grayscale Decentralized 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 ProSiebenSat1 Media and Grayscale Decentralized into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProSiebenSat1 Media AG and Grayscale Decentralized Finance, you can compare the effects of market volatilities on ProSiebenSat1 Media and Grayscale Decentralized 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 ProSiebenSat1 Media with a short position of Grayscale Decentralized. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProSiebenSat1 Media and Grayscale Decentralized.

Diversification Opportunities for ProSiebenSat1 Media and Grayscale Decentralized

ProSiebenSat1GrayscaleDiversified AwayProSiebenSat1GrayscaleDiversified Away100%
-0.2
  Correlation Coefficient

Good diversification

The 3 months correlation between ProSiebenSat1 and Grayscale is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding ProSiebenSat1 Media AG and Grayscale Decentralized Financ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Decentralized and ProSiebenSat1 Media 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 ProSiebenSat1 Media AG are associated (or correlated) with Grayscale Decentralized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Decentralized has no effect on the direction of ProSiebenSat1 Media i.e., ProSiebenSat1 Media and Grayscale Decentralized go up and down completely randomly.

Pair Corralation between ProSiebenSat1 Media and Grayscale Decentralized

Assuming the 90 days horizon ProSiebenSat1 Media AG is expected to generate 0.35 times more return on investment than Grayscale Decentralized. However, ProSiebenSat1 Media AG is 2.87 times less risky than Grayscale Decentralized. It trades about 0.3 of its potential returns per unit of risk. Grayscale Decentralized Finance is currently generating about -0.16 per unit of risk. If you would invest  120.00  in ProSiebenSat1 Media AG on November 18, 2024 and sell it today you would earn a total of  21.00  from holding ProSiebenSat1 Media AG or generate 17.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

ProSiebenSat1 Media AG  vs.  Grayscale Decentralized Financ

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0500,0001,000,0001,500,0002,000,0002,500,0003,000,000
JavaScript chart by amCharts 3.21.15PBSFY DEFG
       Timeline  
ProSiebenSat1 Media 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ProSiebenSat1 Media AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, ProSiebenSat1 Media may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.21.251.31.351.41.45
Grayscale Decentralized 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Grayscale Decentralized Finance are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Grayscale Decentralized reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1001,00010,000100,000

ProSiebenSat1 Media and Grayscale Decentralized Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.33-7.74-5.14-2.550.02.555.27.8410.4813.12 0.0050.0100.0150.0200.0250.0300.035
JavaScript chart by amCharts 3.21.15PBSFY DEFG
       Returns  

Pair Trading with ProSiebenSat1 Media and Grayscale Decentralized

The main advantage of trading using opposite ProSiebenSat1 Media and Grayscale Decentralized positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProSiebenSat1 Media position performs unexpectedly, Grayscale Decentralized 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 Grayscale Decentralized will offset losses from the drop in Grayscale Decentralized's long position.
The idea behind ProSiebenSat1 Media AG and Grayscale Decentralized Finance 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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