Correlation Between RCS MediaGroup and ORBIA

Can any of the company-specific risk be diversified away by investing in both RCS MediaGroup and ORBIA 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 ORBIA 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 ORBIA 675 19 SEP 42, you can compare the effects of market volatilities on RCS MediaGroup and ORBIA 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 ORBIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCS MediaGroup and ORBIA.

Diversification Opportunities for RCS MediaGroup and ORBIA

-0.59

Correlation Coefficient

RCS MediaGroup  ORBIA

Excellent diversification

The 3 months correlation between RCS and ORBIA is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding RCS MediaGroup SpA and ORBIA 675 19 SEP 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORBIA 675 19 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 ORBIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORBIA 675 19 has no effect on the direction of RCS MediaGroup i.e., RCS MediaGroup and ORBIA go up and down completely randomly.

Pair Corralation between RCS MediaGroup and ORBIA

Assuming the 90 days horizon RCS MediaGroup SpA is expected to generate 2.53 times more return on investment than ORBIA. However, RCS MediaGroup is 2.53 times more volatile than ORBIA 675 19 SEP 42. It trades about 0.19 of its potential returns per unit of risk. ORBIA 675 19 SEP 42 is currently generating about 0.13 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 Against
Strength	Very Weak
Accuracy	23.44%
Values	Daily Returns

RCS MediaGroup SpA  vs.  ORBIA 675 19 SEP 42

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.

ORBIA 675 19

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ORBIA 675 19 SEP 42 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, ORBIA may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with RCS MediaGroup and ORBIA

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

The idea behind RCS MediaGroup SpA and ORBIA 675 19 SEP 42 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.