Correlation Between RCS MediaGroup and 83051GAR9

Can any of the company-specific risk be diversified away by investing in both RCS MediaGroup and 83051GAR9 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 RCS MediaGroup and 83051GAR9 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between RCS MediaGroup SpA and SEB 85 02 SEP 25, you can compare the effects of market volatilities on RCS MediaGroup and 83051GAR9 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 RCS MediaGroup with a short position of 83051GAR9. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCS MediaGroup and 83051GAR9.

Diversification Opportunities for RCS MediaGroup and 83051GAR9

0.23

Correlation Coefficient

RCS MediaGroup  83051GAR9

Modest diversification

The 3 months correlation between RCS and 83051GAR9 is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding RCS MediaGroup SpA and SEB 85 02 SEP 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEB 85 02 and RCS MediaGroup 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 RCS MediaGroup SpA are associated (or correlated) with 83051GAR9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEB 85 02 has no effect on the direction of RCS MediaGroup i.e., RCS MediaGroup and 83051GAR9 go up and down completely randomly.

Pair Corralation between RCS MediaGroup and 83051GAR9

Assuming the 90 days horizon RCS MediaGroup SpA is expected to generate 1.0 times more return on investment than 83051GAR9. However, RCS MediaGroup is 1.0 times more volatile than SEB 85 02 SEP 25. It trades about 0.19 of its potential returns per unit of risk. SEB 85 02 SEP 25 is currently generating about -0.08 per unit of risk. If you would invest  88.00  in RCS MediaGroup SpA on December 29, 2024 and sell it today you would earn a total of  25.00  from holding RCS MediaGroup SpA or generate 28.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	32.81%
Values	Daily Returns

RCS MediaGroup SpA  vs.  SEB 85 02 SEP 25

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 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, RCS MediaGroup reported solid returns over the last few months and may actually be approaching a breakup point.

SEB 85 02

Risk-Adjusted Performance

Very Weak

Over the last 90 days SEB 85 02 SEP 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for SEB 85 02 SEP 25 investors.

Pair Trading with RCS MediaGroup and 83051GAR9

The main advantage of trading using opposite RCS MediaGroup and 83051GAR9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCS MediaGroup position performs unexpectedly, 83051GAR9 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 83051GAR9 will offset losses from the drop in 83051GAR9's long position.

The idea behind RCS MediaGroup SpA and SEB 85 02 SEP 25 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.