Correlation Between Adris Grupa and Hrvatska Postanska

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Adris Grupa and Hrvatska Postanska 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 Adris Grupa and Hrvatska Postanska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adris Grupa dd and Hrvatska Postanska Banka, you can compare the effects of market volatilities on Adris Grupa and Hrvatska Postanska 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 Adris Grupa with a short position of Hrvatska Postanska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adris Grupa and Hrvatska Postanska.

Diversification Opportunities for Adris Grupa and Hrvatska Postanska

-0.63
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Adris and Hrvatska is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Adris Grupa dd and Hrvatska Postanska Banka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hrvatska Postanska Banka and Adris Grupa 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 Adris Grupa dd are associated (or correlated) with Hrvatska Postanska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hrvatska Postanska Banka has no effect on the direction of Adris Grupa i.e., Adris Grupa and Hrvatska Postanska go up and down completely randomly.

Pair Corralation between Adris Grupa and Hrvatska Postanska

Assuming the 90 days trading horizon Adris Grupa dd is expected to generate 0.52 times more return on investment than Hrvatska Postanska. However, Adris Grupa dd is 1.94 times less risky than Hrvatska Postanska. It trades about 0.51 of its potential returns per unit of risk. Hrvatska Postanska Banka is currently generating about -0.02 per unit of risk. If you would invest  7,800  in Adris Grupa dd on October 20, 2024 and sell it today you would earn a total of  400.00  from holding Adris Grupa dd or generate 5.13% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy52.94%
ValuesDaily Returns

Adris Grupa dd  vs.  Hrvatska Postanska Banka

 Performance 
       Timeline  
Adris Grupa dd 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Adris Grupa dd are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Adris Grupa may actually be approaching a critical reversion point that can send shares even higher in February 2025.
Hrvatska Postanska Banka 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Hrvatska Postanska Banka are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Hrvatska Postanska exhibited solid returns over the last few months and may actually be approaching a breakup point.

Adris Grupa and Hrvatska Postanska Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Adris Grupa and Hrvatska Postanska

The main advantage of trading using opposite Adris Grupa and Hrvatska Postanska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adris Grupa position performs unexpectedly, Hrvatska Postanska 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 Hrvatska Postanska will offset losses from the drop in Hrvatska Postanska's long position.
The idea behind Adris Grupa dd and Hrvatska Postanska Banka pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Other Complementary Tools

Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Commodity Directory
Find actively traded commodities issued by global exchanges
Global Correlations
Find global opportunities by holding instruments from different markets
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges