Correlation Between ELECTRONIC ARTS and RCS MediaGroup
Can any of the company-specific risk be diversified away by investing in both ELECTRONIC ARTS 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 ELECTRONIC ARTS and RCS MediaGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ELECTRONIC ARTS and RCS MediaGroup SpA, you can compare the effects of market volatilities on ELECTRONIC ARTS 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 ELECTRONIC ARTS with a short position of RCS MediaGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELECTRONIC ARTS and RCS MediaGroup.
Diversification Opportunities for ELECTRONIC ARTS and RCS MediaGroup
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ELECTRONIC and RCS is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding ELECTRONIC ARTS 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 ELECTRONIC ARTS 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 ELECTRONIC ARTS 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 ELECTRONIC ARTS i.e., ELECTRONIC ARTS and RCS MediaGroup go up and down completely randomly.
Pair Corralation between ELECTRONIC ARTS and RCS MediaGroup
Assuming the 90 days trading horizon ELECTRONIC ARTS is expected to generate 2.29 times less return on investment than RCS MediaGroup. But when comparing it to its historical volatility, ELECTRONIC ARTS is 1.74 times less risky than RCS MediaGroup. It trades about 0.05 of its potential returns per unit of risk. RCS MediaGroup SpA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 90.00 in RCS MediaGroup SpA on April 20, 2025 and sell it today you would earn a total of 10.00 from holding RCS MediaGroup SpA or generate 11.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ELECTRONIC ARTS vs. RCS MediaGroup SpA
Performance |
Timeline |
ELECTRONIC ARTS |
RCS MediaGroup SpA |
ELECTRONIC ARTS and RCS MediaGroup Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ELECTRONIC ARTS and RCS MediaGroup
The main advantage of trading using opposite ELECTRONIC ARTS and RCS MediaGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ELECTRONIC ARTS 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.ELECTRONIC ARTS vs. Alfa Financial Software | ELECTRONIC ARTS vs. FUYO GENERAL LEASE | ELECTRONIC ARTS vs. Amkor Technology | ELECTRONIC ARTS vs. Cognizant Technology Solutions |
RCS MediaGroup vs. TITAN MACHINERY | RCS MediaGroup vs. Hanison Construction Holdings | RCS MediaGroup vs. Federal Agricultural Mortgage | RCS MediaGroup vs. Metallurgical of |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |