Correlation Between BII Railway and RCS MediaGroup
Can any of the company-specific risk be diversified away by investing in both BII Railway and RCS MediaGroup 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 BII Railway and RCS MediaGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BII Railway Transportation and RCS MediaGroup SpA, you can compare the effects of market volatilities on BII Railway and RCS MediaGroup 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 BII Railway with a short position of RCS MediaGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of BII Railway and RCS MediaGroup.
Diversification Opportunities for BII Railway and RCS MediaGroup
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between BII and RCS is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding BII Railway Transportation and RCS MediaGroup SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCS MediaGroup SpA and BII Railway 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 BII Railway Transportation are associated (or correlated) with RCS MediaGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCS MediaGroup SpA has no effect on the direction of BII Railway i.e., BII Railway and RCS MediaGroup go up and down completely randomly.
Pair Corralation between BII Railway and RCS MediaGroup
Assuming the 90 days horizon BII Railway Transportation is expected to generate 0.67 times more return on investment than RCS MediaGroup. However, BII Railway Transportation is 1.49 times less risky than RCS MediaGroup. It trades about 0.12 of its potential returns per unit of risk. RCS MediaGroup SpA is currently generating about 0.07 per unit of risk. If you would invest 2.50 in BII Railway Transportation on April 25, 2025 and sell it today you would earn a total of 0.35 from holding BII Railway Transportation or generate 14.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
BII Railway Transportation vs. RCS MediaGroup SpA
Performance |
Timeline |
BII Railway Transpor |
RCS MediaGroup SpA |
BII Railway and RCS MediaGroup Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BII Railway and RCS MediaGroup
The main advantage of trading using opposite BII Railway and RCS MediaGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BII Railway position performs unexpectedly, RCS MediaGroup 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 RCS MediaGroup will offset losses from the drop in RCS MediaGroup's long position.BII Railway vs. DICKS Sporting Goods | BII Railway vs. Fevertree Drinks PLC | BII Railway vs. Collins Foods Limited | BII Railway vs. LIFEWAY FOODS |
RCS MediaGroup vs. Suntory Beverage Food | RCS MediaGroup vs. SUPERNOVA METALS P | RCS MediaGroup vs. Stag Industrial | RCS MediaGroup vs. GOLDGROUP MINING INC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Bonds Directory Find actively traded corporate debentures issued by US companies |