Correlation Between RTL Group and FOX P
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By analyzing existing cross correlation between RTL Group SA and FOX P B, you can compare the effects of market volatilities on RTL Group and FOX P 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 RTL Group with a short position of FOX P. Check out your portfolio center. Please also check ongoing floating volatility patterns of RTL Group and FOX P.
Diversification Opportunities for RTL Group and FOX P
Pay attention - limited upside
The 3 months correlation between RTL and FOX is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding RTL Group SA and FOX P B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOX P B and RTL Group 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 RTL Group SA are associated (or correlated) with FOX P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOX P B has no effect on the direction of RTL Group i.e., RTL Group and FOX P go up and down completely randomly.
Pair Corralation between RTL Group and FOX P
Assuming the 90 days trading horizon RTL Group SA is expected to under-perform the FOX P. In addition to that, RTL Group is 1.18 times more volatile than FOX P B. It trades about -0.09 of its total potential returns per unit of risk. FOX P B is currently generating about 0.24 per unit of volatility. If you would invest 3,520 in FOX P B on September 23, 2024 and sell it today you would earn a total of 860.00 from holding FOX P B or generate 24.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
RTL Group SA vs. FOX P B
Performance |
Timeline |
RTL Group SA |
FOX P B |
RTL Group and FOX P Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with RTL Group and FOX P
The main advantage of trading using opposite RTL Group and FOX P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RTL Group position performs unexpectedly, FOX P 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 FOX P will offset losses from the drop in FOX P's long position.RTL Group vs. KUAISHOU TECHNOLOGY CLB | RTL Group vs. FOX P B | RTL Group vs. News Corporation | RTL Group vs. RTL GROUP UNSPADR |
FOX P vs. KUAISHOU TECHNOLOGY CLB | FOX P vs. News Corporation | FOX P vs. RTL GROUP UNSPADR | FOX P vs. RTL Group SA |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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