Correlation Between Atlantic Grupa and Dalekovod
Can any of the company-specific risk be diversified away by investing in both Atlantic Grupa and Dalekovod 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 Atlantic Grupa and Dalekovod into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlantic Grupa dd and Dalekovod dd, you can compare the effects of market volatilities on Atlantic Grupa and Dalekovod 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 Atlantic Grupa with a short position of Dalekovod. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Grupa and Dalekovod.
Diversification Opportunities for Atlantic Grupa and Dalekovod
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atlantic and Dalekovod is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Grupa dd and Dalekovod dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalekovod dd and Atlantic 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 Atlantic Grupa dd are associated (or correlated) with Dalekovod. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalekovod dd has no effect on the direction of Atlantic Grupa i.e., Atlantic Grupa and Dalekovod go up and down completely randomly.
Pair Corralation between Atlantic Grupa and Dalekovod
Assuming the 90 days trading horizon Atlantic Grupa dd is expected to under-perform the Dalekovod. But the stock apears to be less risky and, when comparing its historical volatility, Atlantic Grupa dd is 1.86 times less risky than Dalekovod. The stock trades about -0.11 of its potential returns per unit of risk. The Dalekovod dd is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 348.00 in Dalekovod dd on September 13, 2024 and sell it today you would lose (8.00) from holding Dalekovod dd or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.37% |
| Values | Daily Returns |
Atlantic Grupa dd vs. Dalekovod dd
Performance |
| Timeline |
| Atlantic Grupa dd |
| Dalekovod dd |
Atlantic Grupa and Dalekovod Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic Grupa and Dalekovod
The main advantage of trading using opposite Atlantic Grupa and Dalekovod positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Grupa position performs unexpectedly, Dalekovod 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 Dalekovod will offset losses from the drop in Dalekovod's long position.| Atlantic Grupa vs. Dalekovod dd | Atlantic Grupa vs. Institut IGH dd | Atlantic Grupa vs. Jadroplov dd | Atlantic Grupa vs. Zagrebacka Banka dd |
| Dalekovod vs. AD Plastik dd | Dalekovod vs. Hrvatska Postanska Banka | Dalekovod vs. Podravka Prehrambena Industrija | Dalekovod vs. Adris Grupa dd |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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