Correlation Between St Galler and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both St Galler 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 St Galler and Komercni Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Galler Kantonalbank and Komercni Banka, you can compare the effects of market volatilities on St Galler 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 St Galler with a short position of Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and Komercni Banka.
Diversification Opportunities for St Galler and Komercni Banka
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0QQZ and Komercni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank and Komercni Banka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka and St Galler 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 St Galler Kantonalbank 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 St Galler i.e., St Galler and Komercni Banka go up and down completely randomly.
Pair Corralation between St Galler and Komercni Banka
Assuming the 90 days trading horizon St Galler Kantonalbank is expected to under-perform the Komercni Banka. In addition to that, St Galler is 59.37 times more volatile than Komercni Banka. It trades about -0.03 of its total potential returns per unit of risk. Komercni Banka is currently generating about 0.04 per unit of volatility. If you would invest 53,257 in Komercni Banka on August 30, 2024 and sell it today you would earn a total of 143.00 from holding Komercni Banka or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
St Galler Kantonalbank vs. Komercni Banka
Performance |
| Timeline |
| St Galler Kantonalbank |
| Komercni Banka |
St Galler and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and Komercni Banka
The main advantage of trading using opposite St Galler and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler 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.| St Galler vs. Lendinvest PLC | St Galler vs. Neometals | St Galler vs. Albion Technology General | St Galler vs. Jupiter Fund Management |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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