Correlation Between Komercni Banka and GlobalData PLC
Can any of the company-specific risk be diversified away by investing in both Komercni Banka and GlobalData PLC 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 GlobalData PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komercni Banka and GlobalData PLC, you can compare the effects of market volatilities on Komercni Banka and GlobalData PLC 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 GlobalData PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and GlobalData PLC.
Diversification Opportunities for Komercni Banka and GlobalData PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Komercni and GlobalData is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka and GlobalData PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlobalData PLC 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 GlobalData PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlobalData PLC has no effect on the direction of Komercni Banka i.e., Komercni Banka and GlobalData PLC go up and down completely randomly.
Pair Corralation between Komercni Banka and GlobalData PLC
Assuming the 90 days trading horizon Komercni Banka is expected to generate 257.5 times less return on investment than GlobalData PLC. But when comparing it to its historical volatility, Komercni Banka is 235.86 times less risky than GlobalData PLC. It trades about 0.06 of its potential returns per unit of risk. GlobalData PLC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 14,639 in GlobalData PLC on September 2, 2024 and sell it today you would earn a total of 5,561 from holding GlobalData PLC or generate 37.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Komercni Banka vs. GlobalData PLC
Performance |
| Timeline |
| Komercni Banka |
| GlobalData PLC |
Komercni Banka and GlobalData PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komercni Banka and GlobalData PLC
The main advantage of trading using opposite Komercni Banka and GlobalData PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka position performs unexpectedly, GlobalData PLC 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 GlobalData PLC will offset losses from the drop in GlobalData PLC'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 |
| GlobalData PLC vs. Catalyst Media Group | GlobalData PLC vs. CATLIN GROUP | GlobalData PLC vs. Tamburi Investment Partners | GlobalData PLC 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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