Correlation Between Ailleron and Bank Handlowy
Can any of the company-specific risk be diversified away by investing in both Ailleron and Bank Handlowy 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 Ailleron and Bank Handlowy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ailleron SA and Bank Handlowy w, you can compare the effects of market volatilities on Ailleron and Bank Handlowy 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 Ailleron with a short position of Bank Handlowy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ailleron and Bank Handlowy.
Diversification Opportunities for Ailleron and Bank Handlowy
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ailleron and Bank is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ailleron SA and Bank Handlowy w in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Handlowy w and Ailleron 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 Ailleron SA are associated (or correlated) with Bank Handlowy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Handlowy w has no effect on the direction of Ailleron i.e., Ailleron and Bank Handlowy go up and down completely randomly.
Pair Corralation between Ailleron and Bank Handlowy
Assuming the 90 days trading horizon Ailleron SA is expected to generate 1.2 times more return on investment than Bank Handlowy. However, Ailleron is 1.2 times more volatile than Bank Handlowy w. It trades about 0.07 of its potential returns per unit of risk. Bank Handlowy w is currently generating about -0.11 per unit of risk. If you would invest 2,100 in Ailleron SA on September 5, 2024 and sell it today you would earn a total of 40.00 from holding Ailleron SA or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ailleron SA vs. Bank Handlowy w
Performance |
| Timeline |
| Ailleron SA |
| Bank Handlowy w |
Ailleron and Bank Handlowy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ailleron and Bank Handlowy
The main advantage of trading using opposite Ailleron and Bank Handlowy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ailleron position performs unexpectedly, Bank Handlowy 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 Bank Handlowy will offset losses from the drop in Bank Handlowy's long position.| Ailleron vs. Asseco Business Solutions | Ailleron vs. Detalion Games SA | Ailleron vs. Kogeneracja SA | Ailleron vs. Asseco South Eastern |
| Bank Handlowy vs. MW Trade SA | Bank Handlowy vs. LSI Software SA | Bank Handlowy vs. Road Studio SA | Bank Handlowy vs. mBank SA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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