Correlation Between Komercni Banka and Atresmedia
Can any of the company-specific risk be diversified away by investing in both Komercni Banka and Atresmedia 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 Atresmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komercni Banka and Atresmedia, you can compare the effects of market volatilities on Komercni Banka and Atresmedia 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 Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and Atresmedia.
Diversification Opportunities for Komercni Banka and Atresmedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Komercni and Atresmedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia 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 Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of Komercni Banka i.e., Komercni Banka and Atresmedia go up and down completely randomly.
Pair Corralation between Komercni Banka and Atresmedia
Assuming the 90 days trading horizon Komercni Banka is expected to generate 209.4 times less return on investment than Atresmedia. But when comparing it to its historical volatility, Komercni Banka is 87.87 times less risky than Atresmedia. It trades about 0.04 of its potential returns per unit of risk. Atresmedia is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 278.00 in Atresmedia on September 3, 2024 and sell it today you would earn a total of 175.00 from holding Atresmedia or generate 62.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Komercni Banka vs. Atresmedia
Performance |
| Timeline |
| Komercni Banka |
| Atresmedia |
Komercni Banka and Atresmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komercni Banka and Atresmedia
The main advantage of trading using opposite Komercni Banka and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia's long position.| Komercni Banka vs. Atresmedia | Komercni Banka vs. Fonix Mobile plc | Komercni Banka vs. Flutter Entertainment PLC | Komercni Banka vs. Catalyst Media Group |
| Atresmedia vs. Catalyst Media Group | Atresmedia vs. CATLIN GROUP | Atresmedia vs. Tamburi Investment Partners | Atresmedia vs. Magnora ASA |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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