Correlation Between Atlantic Grupa and KRA Dd
Can any of the company-specific risk be diversified away by investing in both Atlantic Grupa and KRA Dd 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 KRA Dd 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 KRA dd, you can compare the effects of market volatilities on Atlantic Grupa and KRA Dd 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 KRA Dd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Grupa and KRA Dd.
Diversification Opportunities for Atlantic Grupa and KRA Dd
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atlantic and KRA is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Grupa dd and KRA dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRA 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 KRA Dd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRA dd has no effect on the direction of Atlantic Grupa i.e., Atlantic Grupa and KRA Dd go up and down completely randomly.
Pair Corralation between Atlantic Grupa and KRA Dd
Assuming the 90 days trading horizon Atlantic Grupa is expected to generate 1.12 times less return on investment than KRA Dd. But when comparing it to its historical volatility, Atlantic Grupa dd is 3.53 times less risky than KRA Dd. It trades about 0.02 of its potential returns per unit of risk. KRA dd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 11,500 in KRA dd on November 2, 2024 and sell it today you would lose (200.00) from holding KRA dd or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 36.67% |
| Values | Daily Returns |
Atlantic Grupa dd vs. KRA dd
Performance |
| Timeline |
| Atlantic Grupa dd |
| KRA dd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atlantic Grupa and KRA Dd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic Grupa and KRA Dd
The main advantage of trading using opposite Atlantic Grupa and KRA Dd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Grupa position performs unexpectedly, KRA Dd 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 KRA Dd will offset losses from the drop in KRA Dd'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 |
| KRA Dd vs. Dalekovod dd | KRA Dd vs. Institut IGH dd | KRA Dd vs. Jadroplov dd | KRA Dd vs. Zagrebacka Banka 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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