Correlation Between Fortune Brands and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both Fortune Brands and Komercni Banka 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 Fortune Brands and Komercni Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortune Brands Home and Komercni Banka, you can compare the effects of market volatilities on Fortune Brands and Komercni Banka 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 Fortune Brands with a short position of Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortune Brands and Komercni Banka.
Diversification Opportunities for Fortune Brands and Komercni Banka
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fortune and Komercni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fortune Brands Home and Komercni Banka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka and Fortune Brands 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 Fortune Brands Home are associated (or correlated) with Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka has no effect on the direction of Fortune Brands i.e., Fortune Brands and Komercni Banka go up and down completely randomly.
Pair Corralation between Fortune Brands and Komercni Banka
If you would invest 6,969 in Fortune Brands Home on September 1, 2024 and sell it today you would earn a total of 861.00 from holding Fortune Brands Home or generate 12.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 84.5% |
| Values | Daily Returns |
Fortune Brands Home vs. Komercni Banka
Performance |
| Timeline |
| Fortune Brands Home |
| Komercni Banka |
Fortune Brands and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortune Brands and Komercni Banka
The main advantage of trading using opposite Fortune Brands and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortune Brands position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka's long position.| Fortune Brands vs. Uniper SE | Fortune Brands vs. Mulberry Group PLC | Fortune Brands vs. London Security Plc | Fortune Brands vs. Triad Group PLC |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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