Correlation Between Komercni Banka and Primary Health
Can any of the company-specific risk be diversified away by investing in both Komercni Banka and Primary Health 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 Primary Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komercni Banka and Primary Health Properties, you can compare the effects of market volatilities on Komercni Banka and Primary Health 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 Primary Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and Primary Health.
Diversification Opportunities for Komercni Banka and Primary Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Komercni and Primary is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka and Primary Health Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primary Health Properties 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 Primary Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primary Health Properties has no effect on the direction of Komercni Banka i.e., Komercni Banka and Primary Health go up and down completely randomly.
Pair Corralation between Komercni Banka and Primary Health
Assuming the 90 days trading horizon Komercni Banka is expected to generate 24.5 times less return on investment than Primary Health. But when comparing it to its historical volatility, Komercni Banka is 127.61 times less risky than Primary Health. It trades about 0.06 of its potential returns per unit of risk. Primary Health Properties is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 9,257 in Primary Health Properties on September 14, 2024 and sell it today you would earn a total of 188.00 from holding Primary Health Properties or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Komercni Banka vs. Primary Health Properties
Performance |
| Timeline |
| Komercni Banka |
| Primary Health Properties |
Komercni Banka and Primary Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komercni Banka and Primary Health
The main advantage of trading using opposite Komercni Banka and Primary Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka position performs unexpectedly, Primary Health 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 Primary Health will offset losses from the drop in Primary Health's long position.| Komercni Banka vs. Samsung Electronics Co | Komercni Banka vs. Samsung Electronics Co | Komercni Banka vs. Hyundai Motor | Komercni Banka vs. Reliance Industries Ltd |
| Primary Health vs. Morgan Advanced Materials | Primary Health vs. Komercni Banka | Primary Health vs. Alior Bank SA | Primary Health vs. National Bank of |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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