Correlation Between Komercni Banka and MT Bank
Can any of the company-specific risk be diversified away by investing in both Komercni Banka and MT Bank 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 Komercni Banka and MT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komercni Banka and MT Bank Corp, you can compare the effects of market volatilities on Komercni Banka and MT Bank 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 Komercni Banka with a short position of MT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and MT Bank.
Diversification Opportunities for Komercni Banka and MT Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Komercni and 0JW2 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka and MT Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MT Bank Corp and Komercni Banka 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 Komercni Banka are associated (or correlated) with MT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MT Bank Corp has no effect on the direction of Komercni Banka i.e., Komercni Banka and MT Bank go up and down completely randomly.
Pair Corralation between Komercni Banka and MT Bank
Assuming the 90 days trading horizon Komercni Banka is expected to generate 397.17 times less return on investment than MT Bank. But when comparing it to its historical volatility, Komercni Banka is 185.26 times less risky than MT Bank. It trades about 0.06 of its potential returns per unit of risk. MT Bank Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 12,916 in MT Bank Corp on September 2, 2024 and sell it today you would earn a total of 9,083 from holding MT Bank Corp or generate 70.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.0% |
| Values | Daily Returns |
Komercni Banka vs. MT Bank Corp
Performance |
| Timeline |
| Komercni Banka |
| MT Bank Corp |
Komercni Banka and MT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komercni Banka and MT Bank
The main advantage of trading using opposite Komercni Banka and MT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka position performs unexpectedly, MT Bank 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 MT Bank will offset losses from the drop in MT Bank's long position.| Komercni Banka vs. Delta Air Lines | Komercni Banka vs. Wizz Air Holdings | Komercni Banka vs. The Mercantile Investment | Komercni Banka vs. Amedeo Air Four |
| MT Bank vs. Cizzle Biotechnology Holdings | MT Bank vs. AfriTin Mining | MT Bank vs. GoldMining | MT Bank vs. Capital Drilling |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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