Correlation Between Adris Grupa and Hrvatska Postanska
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
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Adris and Hrvatska is -0.54. 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 is expected to generate 1.77 times less return on investment than Hrvatska Postanska. But when comparing it to its historical volatility, Adris Grupa dd is 1.09 times less risky than Hrvatska Postanska. It trades about 0.29 of its potential returns per unit of risk. Hrvatska Postanska Banka is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 29,200 in Hrvatska Postanska Banka on September 14, 2024 and sell it today you would earn a total of 5,200 from holding Hrvatska Postanska Banka or generate 17.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
Adris Grupa dd vs. Hrvatska Postanska Banka
Performance |
| Timeline |
| Adris Grupa dd |
| Hrvatska Postanska Banka |
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.| Adris Grupa vs. Dalekovod dd | Adris Grupa vs. Institut IGH dd | Adris Grupa vs. Jadroplov dd | Adris Grupa vs. Zagrebacka Banka dd |
| Hrvatska Postanska vs. Zagrebacka Banka dd | Hrvatska Postanska vs. AD Plastik dd | Hrvatska Postanska vs. Dalekovod dd | Hrvatska Postanska 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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