Correlation Between Adris Grupa and KRA Dd
Can any of the company-specific risk be diversified away by investing in both Adris Grupa and KRA Dd 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 KRA Dd 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 KRA dd, you can compare the effects of market volatilities on Adris Grupa and KRA Dd 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 KRA Dd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adris Grupa and KRA Dd.
Diversification Opportunities for Adris Grupa and KRA Dd
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Adris and KRA is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Adris Grupa dd and KRA dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRA 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 KRA Dd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRA dd has no effect on the direction of Adris Grupa i.e., Adris Grupa and KRA Dd go up and down completely randomly.
Pair Corralation between Adris Grupa and KRA Dd
Assuming the 90 days trading horizon Adris Grupa dd is expected to generate 0.37 times more return on investment than KRA Dd. However, Adris Grupa dd is 2.68 times less risky than KRA Dd. It trades about 0.51 of its potential returns per unit of risk. KRA dd is currently generating about -0.29 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 Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Adris Grupa dd vs. KRA dd
Performance |
| Timeline |
| Adris Grupa dd |
| KRA dd |
Adris Grupa and KRA Dd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adris Grupa and KRA Dd
The main advantage of trading using opposite Adris Grupa and KRA Dd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adris Grupa position performs unexpectedly, KRA Dd 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 KRA Dd will offset losses from the drop in KRA Dd's long position.| Adris Grupa vs. Dalekovod dd | Adris Grupa vs. Institut IGH dd | Adris Grupa vs. Jadroplov dd | Adris Grupa vs. Zagrebacka Banka dd |
| KRA Dd vs. AD Plastik dd | KRA Dd vs. Hrvatska Postanska Banka | KRA Dd vs. Dalekovod dd | KRA Dd 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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