Correlation Between Takeda Pharmaceutical and ProSiebenSat1 Media

Can any of the company-specific risk be diversified away by investing in both Takeda Pharmaceutical and ProSiebenSat1 Media 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 Takeda Pharmaceutical and ProSiebenSat1 Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Takeda Pharmaceutical and ProSiebenSat1 Media SE, you can compare the effects of market volatilities on Takeda Pharmaceutical and ProSiebenSat1 Media 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 Takeda Pharmaceutical with a short position of ProSiebenSat1 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Takeda Pharmaceutical and ProSiebenSat1 Media.

Diversification Opportunities for Takeda Pharmaceutical and ProSiebenSat1 Media

-0.53

Correlation Coefficient

Takeda Pharmaceutical  ProSiebenSat1 Media

Excellent diversification

The 3 months correlation between Takeda and ProSiebenSat1 is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Takeda Pharmaceutical and ProSiebenSat1 Media SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProSiebenSat1 Media and Takeda Pharmaceutical 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 Takeda Pharmaceutical are associated (or correlated) with ProSiebenSat1 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProSiebenSat1 Media has no effect on the direction of Takeda Pharmaceutical i.e., Takeda Pharmaceutical and ProSiebenSat1 Media go up and down completely randomly.

Pair Corralation between Takeda Pharmaceutical and ProSiebenSat1 Media

Assuming the 90 days trading horizon Takeda Pharmaceutical is expected to under-perform the ProSiebenSat1 Media. But the stock apears to be less risky and, when comparing its historical volatility, Takeda Pharmaceutical is 1.89 times less risky than ProSiebenSat1 Media. The stock trades about -0.06 of its potential returns per unit of risk. The ProSiebenSat1 Media SE is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  599.00  in ProSiebenSat1 Media SE on April 24, 2025 and sell it today you would earn a total of  119.00  from holding ProSiebenSat1 Media SE or generate 19.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Takeda Pharmaceutical  vs.  ProSiebenSat1 Media SE

Takeda Pharmaceutical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Takeda Pharmaceutical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Takeda Pharmaceutical is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

ProSiebenSat1 Media

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ProSiebenSat1 Media SE are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ProSiebenSat1 Media reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Takeda Pharmaceutical and ProSiebenSat1 Media

The main advantage of trading using opposite Takeda Pharmaceutical and ProSiebenSat1 Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Takeda Pharmaceutical position performs unexpectedly, ProSiebenSat1 Media 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 ProSiebenSat1 Media will offset losses from the drop in ProSiebenSat1 Media's long position.

The idea behind Takeda Pharmaceutical and ProSiebenSat1 Media SE 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.