Correlation Between Appeninn Nyrt and CIG Pannonia
Can any of the company-specific risk be diversified away by investing in both Appeninn Nyrt and CIG Pannonia 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 Appeninn Nyrt and CIG Pannonia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Appeninn Nyrt and CIG Pannonia Life, you can compare the effects of market volatilities on Appeninn Nyrt and CIG Pannonia 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 Appeninn Nyrt with a short position of CIG Pannonia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Appeninn Nyrt and CIG Pannonia.
Diversification Opportunities for Appeninn Nyrt and CIG Pannonia
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Appeninn and CIG is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Appeninn Nyrt and CIG Pannonia Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIG Pannonia Life and Appeninn Nyrt 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 Appeninn Nyrt are associated (or correlated) with CIG Pannonia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIG Pannonia Life has no effect on the direction of Appeninn Nyrt i.e., Appeninn Nyrt and CIG Pannonia go up and down completely randomly.
Pair Corralation between Appeninn Nyrt and CIG Pannonia
Assuming the 90 days trading horizon Appeninn Nyrt is expected to generate 1.26 times less return on investment than CIG Pannonia. In addition to that, Appeninn Nyrt is 1.25 times more volatile than CIG Pannonia Life. It trades about 0.12 of its total potential returns per unit of risk. CIG Pannonia Life is currently generating about 0.19 per unit of volatility. If you would invest 31,700 in CIG Pannonia Life on August 25, 2024 and sell it today you would earn a total of 3,400 from holding CIG Pannonia Life or generate 10.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Appeninn Nyrt vs. CIG Pannonia Life
Performance |
| Timeline |
| Appeninn Nyrt |
| CIG Pannonia Life |
Appeninn Nyrt and CIG Pannonia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Appeninn Nyrt and CIG Pannonia
The main advantage of trading using opposite Appeninn Nyrt and CIG Pannonia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Appeninn Nyrt position performs unexpectedly, CIG Pannonia 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 CIG Pannonia will offset losses from the drop in CIG Pannonia's long position.| Appeninn Nyrt vs. Raba Jarmuipari Holding | Appeninn Nyrt vs. CIG Pannonia Life | Appeninn Nyrt vs. NordTelekom Telecommunications Service | Appeninn Nyrt vs. OPUS GLOBAL Nyrt |
| CIG Pannonia vs. Appeninn Nyrt | CIG Pannonia vs. Raba Jarmuipari Holding | CIG Pannonia vs. NordTelekom Telecommunications Service | CIG Pannonia vs. OPUS GLOBAL Nyrt |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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