Correlation Between Ally Financial and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both Ally Financial and Komercni Banka 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 Ally Financial and Komercni Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ally Financial and Komercni Banka, you can compare the effects of market volatilities on Ally Financial and Komercni Banka 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 Ally Financial with a short position of Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ally Financial and Komercni Banka.
Diversification Opportunities for Ally Financial and Komercni Banka
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ally and Komercni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ally Financial and Komercni Banka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka and Ally Financial 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 Ally Financial are associated (or correlated) with Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka has no effect on the direction of Ally Financial i.e., Ally Financial and Komercni Banka go up and down completely randomly.
Pair Corralation between Ally Financial and Komercni Banka
If you would invest 3,456 in Ally Financial on October 20, 2024 and sell it today you would earn a total of 309.00 from holding Ally Financial or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ally Financial vs. Komercni Banka
Performance |
| Timeline |
| Ally Financial |
| Komercni Banka |
Ally Financial and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ally Financial and Komercni Banka
The main advantage of trading using opposite Ally Financial and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ally Financial position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka's long position.| Ally Financial vs. McEwen Mining | Ally Financial vs. JD Sports Fashion | Ally Financial vs. First Majestic Silver | Ally Financial vs. Beowulf Mining |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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