Correlation Between RTL GROUP and FOX P

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

By analyzing existing cross correlation between RTL GROUP UNSPADR and FOX P B, you can compare the effects of market volatilities on RTL GROUP and FOX P 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 RTL GROUP with a short position of FOX P. Check out your portfolio center. Please also check ongoing floating volatility patterns of RTL GROUP and FOX P.

Diversification Opportunities for RTL GROUP and FOX P

-0.08

Correlation Coefficient

RTL GROUP  FOX P

Good diversification

The 3 months correlation between RTL and FOX is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding RTL GROUP UNSPADR and FOX P B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOX P B and RTL GROUP 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 RTL GROUP UNSPADR are associated (or correlated) with FOX P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOX P B has no effect on the direction of RTL GROUP i.e., RTL GROUP and FOX P go up and down completely randomly.

Pair Corralation between RTL GROUP and FOX P

Assuming the 90 days trading horizon RTL GROUP UNSPADR is expected to generate 4.61 times more return on investment than FOX P. However, RTL GROUP is 4.61 times more volatile than FOX P B. It trades about 0.04 of its potential returns per unit of risk. FOX P B is currently generating about 0.11 per unit of risk. If you would invest  306.00  in RTL GROUP UNSPADR on April 24, 2025 and sell it today you would earn a total of  12.00  from holding RTL GROUP UNSPADR or generate 3.92% return on investment over 90 days.

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

RTL GROUP UNSPADR  vs.  FOX P B

RTL GROUP UNSPADR

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in RTL GROUP UNSPADR are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, RTL GROUP reported solid returns over the last few months and may actually be approaching a breakup point.

FOX P B

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FOX P B are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FOX P may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with RTL GROUP and FOX P

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

The idea behind RTL GROUP UNSPADR and FOX P B 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.