Correlation Between Komercni Banka and Omnicom

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Komercni Banka and Omnicom 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 Omnicom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komercni Banka and Omnicom Group, you can compare the effects of market volatilities on Komercni Banka and Omnicom 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 Omnicom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and Omnicom.

Diversification Opportunities for Komercni Banka and Omnicom

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Komercni and Omnicom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka and Omnicom Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnicom Group 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 Omnicom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnicom Group has no effect on the direction of Komercni Banka i.e., Komercni Banka and Omnicom go up and down completely randomly.

Pair Corralation between Komercni Banka and Omnicom

If you would invest  53,400  in Komercni Banka on September 15, 2024 and sell it today you would earn a total of  0.00  from holding Komercni Banka or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.65%
ValuesDaily Returns

Komercni Banka  vs.  Omnicom Group

 Performance 
       Timeline  
Komercni Banka 

Risk-Adjusted Performance

0 of 100

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

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Omnicom Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Komercni Banka and Omnicom Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Komercni Banka and Omnicom

The main advantage of trading using opposite Komercni Banka and Omnicom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka position performs unexpectedly, Omnicom 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 Omnicom will offset losses from the drop in Omnicom's long position.
The idea behind Komercni Banka and Omnicom Group 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.
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

Other Complementary Tools

Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Share Portfolio
Track or share privately all of your investments from the convenience of any device