Correlation Between Prosiebensat and SIDETRADE

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

By analyzing existing cross correlation between Prosiebensat 1 Media and SIDETRADE EO 1, you can compare the effects of market volatilities on Prosiebensat and SIDETRADE 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 Prosiebensat with a short position of SIDETRADE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosiebensat and SIDETRADE.

Diversification Opportunities for Prosiebensat and SIDETRADE

0.73

Correlation Coefficient

Prosiebensat  SIDETRADE

Poor diversification

The 3 months correlation between Prosiebensat and SIDETRADE is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Prosiebensat 1 Media and SIDETRADE EO 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIDETRADE EO 1 and Prosiebensat 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 Prosiebensat 1 Media are associated (or correlated) with SIDETRADE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIDETRADE EO 1 has no effect on the direction of Prosiebensat i.e., Prosiebensat and SIDETRADE go up and down completely randomly.

Pair Corralation between Prosiebensat and SIDETRADE

Assuming the 90 days trading horizon Prosiebensat 1 Media is expected to generate 1.26 times more return on investment than SIDETRADE. However, Prosiebensat is 1.26 times more volatile than SIDETRADE EO 1. It trades about 0.12 of its potential returns per unit of risk. SIDETRADE EO 1 is currently generating about 0.05 per unit of risk. If you would invest  600.00  in Prosiebensat 1 Media on April 24, 2025 and sell it today you would earn a total of  121.00  from holding Prosiebensat 1 Media or generate 20.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Prosiebensat 1 Media  vs.  SIDETRADE EO 1

Prosiebensat 1 Media

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Prosiebensat 1 Media are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile primary indicators, Prosiebensat unveiled solid returns over the last few months and may actually be approaching a breakup point.

SIDETRADE EO 1

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SIDETRADE EO 1 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, SIDETRADE is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Prosiebensat and SIDETRADE

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

The idea behind Prosiebensat 1 Media and SIDETRADE EO 1 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.