Correlation Between Allegroeu and Kogeneracja
Can any of the company-specific risk be diversified away by investing in both Allegroeu and Kogeneracja 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 Allegroeu and Kogeneracja into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allegroeu SA and Kogeneracja SA, you can compare the effects of market volatilities on Allegroeu and Kogeneracja 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 Allegroeu with a short position of Kogeneracja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegroeu and Kogeneracja.
Diversification Opportunities for Allegroeu and Kogeneracja
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Allegroeu and Kogeneracja is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Allegroeu SA and Kogeneracja SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kogeneracja SA and Allegroeu 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 Allegroeu SA are associated (or correlated) with Kogeneracja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kogeneracja SA has no effect on the direction of Allegroeu i.e., Allegroeu and Kogeneracja go up and down completely randomly.
Pair Corralation between Allegroeu and Kogeneracja
Assuming the 90 days trading horizon Allegroeu is expected to generate 4.64 times less return on investment than Kogeneracja. But when comparing it to its historical volatility, Allegroeu SA is 1.29 times less risky than Kogeneracja. It trades about 0.02 of its potential returns per unit of risk. Kogeneracja SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,480 in Kogeneracja SA on September 3, 2024 and sell it today you would earn a total of 3,500 from holding Kogeneracja SA or generate 141.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allegroeu SA vs. Kogeneracja SA
Performance |
| Timeline |
| Allegroeu SA |
| Kogeneracja SA |
Allegroeu and Kogeneracja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegroeu and Kogeneracja
The main advantage of trading using opposite Allegroeu and Kogeneracja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegroeu position performs unexpectedly, Kogeneracja 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 Kogeneracja will offset losses from the drop in Kogeneracja's long position.| Allegroeu vs. Medicofarma Biotech SA | Allegroeu vs. Creotech Instruments SA | Allegroeu vs. SOFTWARE MANSION SPOLKA | Allegroeu vs. Skyline Investment SA |
| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja vs. Polski Koncern Naftowy |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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