Correlation Between ProSiebenSat1 Media and ASSOC BR
Can any of the company-specific risk be diversified away by investing in both ProSiebenSat1 Media and ASSOC BR 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 ProSiebenSat1 Media and ASSOC BR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProSiebenSat1 Media SE and ASSOC BR FOODS, you can compare the effects of market volatilities on ProSiebenSat1 Media and ASSOC BR 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 ProSiebenSat1 Media with a short position of ASSOC BR. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProSiebenSat1 Media and ASSOC BR.
Diversification Opportunities for ProSiebenSat1 Media and ASSOC BR
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProSiebenSat1 and ASSOC is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding ProSiebenSat1 Media SE and ASSOC BR FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASSOC BR FOODS and ProSiebenSat1 Media 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 ProSiebenSat1 Media SE are associated (or correlated) with ASSOC BR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASSOC BR FOODS has no effect on the direction of ProSiebenSat1 Media i.e., ProSiebenSat1 Media and ASSOC BR go up and down completely randomly.
Pair Corralation between ProSiebenSat1 Media and ASSOC BR
Assuming the 90 days horizon ProSiebenSat1 Media SE is expected to generate 1.51 times more return on investment than ASSOC BR. However, ProSiebenSat1 Media is 1.51 times more volatile than ASSOC BR FOODS. It trades about 0.12 of its potential returns per unit of risk. ASSOC BR FOODS is currently generating about 0.0 per unit of risk. If you would invest 599.00 in ProSiebenSat1 Media SE on April 23, 2025 and sell it today you would earn a total of 120.00 from holding ProSiebenSat1 Media SE or generate 20.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ProSiebenSat1 Media SE vs. ASSOC BR FOODS
Performance |
Timeline |
ProSiebenSat1 Media |
ASSOC BR FOODS |
ProSiebenSat1 Media and ASSOC BR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ProSiebenSat1 Media and ASSOC BR
The main advantage of trading using opposite ProSiebenSat1 Media and ASSOC BR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProSiebenSat1 Media position performs unexpectedly, ASSOC BR 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 ASSOC BR will offset losses from the drop in ASSOC BR's long position.ProSiebenSat1 Media vs. Easy Software AG | ProSiebenSat1 Media vs. Corsair Gaming | ProSiebenSat1 Media vs. BRAGG GAMING GRP | ProSiebenSat1 Media vs. BAKED GAMES SA |
ASSOC BR vs. ELMOS SEMICONDUCTOR | ASSOC BR vs. Prosiebensat 1 Media | ASSOC BR vs. PARKEN Sport Entertainment | ASSOC BR vs. ProSiebenSat1 Media SE |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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