Correlation Between Alior Bank and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both Alior Bank and TEN SQUARE 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 Alior Bank and TEN SQUARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alior Bank SA and TEN SQUARE GAMES, you can compare the effects of market volatilities on Alior Bank and TEN SQUARE 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 Alior Bank with a short position of TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alior Bank and TEN SQUARE.
Diversification Opportunities for Alior Bank and TEN SQUARE
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alior and TEN is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Alior Bank SA and TEN SQUARE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEN SQUARE GAMES and Alior Bank 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 Alior Bank SA are associated (or correlated) with TEN SQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEN SQUARE GAMES has no effect on the direction of Alior Bank i.e., Alior Bank and TEN SQUARE go up and down completely randomly.
Pair Corralation between Alior Bank and TEN SQUARE
Assuming the 90 days trading horizon Alior Bank SA is expected to under-perform the TEN SQUARE. But the stock apears to be less risky and, when comparing its historical volatility, Alior Bank SA is 1.23 times less risky than TEN SQUARE. The stock trades about -0.14 of its potential returns per unit of risk. The TEN SQUARE GAMES is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 8,395 in TEN SQUARE GAMES on September 12, 2024 and sell it today you would lose (300.00) from holding TEN SQUARE GAMES or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alior Bank SA vs. TEN SQUARE GAMES
Performance |
| Timeline |
| Alior Bank SA |
| TEN SQUARE GAMES |
Alior Bank and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alior Bank and TEN SQUARE
The main advantage of trading using opposite Alior Bank and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alior Bank position performs unexpectedly, TEN SQUARE 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 TEN SQUARE will offset losses from the drop in TEN SQUARE's long position.| Alior Bank vs. Banco Santander SA | Alior Bank vs. Asseco Business Solutions | Alior Bank vs. Detalion Games SA | Alior Bank vs. Asseco South Eastern |
| TEN SQUARE vs. Medicalg | TEN SQUARE vs. Play2Chill SA | TEN SQUARE vs. Tower Investments SA | TEN SQUARE vs. Echo Investment 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |