Correlation Between Adris Grupa and Institut IGH
Can any of the company-specific risk be diversified away by investing in both Adris Grupa and Institut IGH 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 Institut IGH 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 Institut IGH dd, you can compare the effects of market volatilities on Adris Grupa and Institut IGH 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 Institut IGH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adris Grupa and Institut IGH.
Diversification Opportunities for Adris Grupa and Institut IGH
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Adris and Institut is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Adris Grupa dd and Institut IGH dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Institut IGH dd 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 Institut IGH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Institut IGH dd has no effect on the direction of Adris Grupa i.e., Adris Grupa and Institut IGH go up and down completely randomly.
Pair Corralation between Adris Grupa and Institut IGH
Assuming the 90 days trading horizon Adris Grupa dd is expected to generate 0.36 times more return on investment than Institut IGH. However, Adris Grupa dd is 2.74 times less risky than Institut IGH. It trades about 0.14 of its potential returns per unit of risk. Institut IGH dd is currently generating about -0.29 per unit of risk. If you would invest 7,900 in Adris Grupa dd on September 12, 2024 and sell it today you would earn a total of 250.00 from holding Adris Grupa dd or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.57% |
| Values | Daily Returns |
Adris Grupa dd vs. Institut IGH dd
Performance |
| Timeline |
| Adris Grupa dd |
| Institut IGH dd |
Adris Grupa and Institut IGH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adris Grupa and Institut IGH
The main advantage of trading using opposite Adris Grupa and Institut IGH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adris Grupa position performs unexpectedly, Institut IGH 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 Institut IGH will offset losses from the drop in Institut IGH's long position.| Adris Grupa vs. Adris Grupa dd | Adris Grupa vs. AD Plastik dd | Adris Grupa vs. Hrvatska Postanska Banka | Adris Grupa vs. Dalekovod dd |
| Institut IGH vs. AD Plastik dd | Institut IGH vs. Hrvatska Postanska Banka | Institut IGH vs. Dalekovod dd | Institut IGH vs. Podravka Prehrambena Industrija |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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