Correlation Between Atlantic Grupa and Podravka Prehrambena
Can any of the company-specific risk be diversified away by investing in both Atlantic Grupa and Podravka Prehrambena 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 Podravka Prehrambena 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 Podravka Prehrambena Industrija, you can compare the effects of market volatilities on Atlantic Grupa and Podravka Prehrambena 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 Podravka Prehrambena. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Grupa and Podravka Prehrambena.
Diversification Opportunities for Atlantic Grupa and Podravka Prehrambena
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atlantic and Podravka is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Grupa dd and Podravka Prehrambena Industrij in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Podravka Prehrambena 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 Podravka Prehrambena. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Podravka Prehrambena has no effect on the direction of Atlantic Grupa i.e., Atlantic Grupa and Podravka Prehrambena go up and down completely randomly.
Pair Corralation between Atlantic Grupa and Podravka Prehrambena
Assuming the 90 days trading horizon Atlantic Grupa dd is expected to generate 0.43 times more return on investment than Podravka Prehrambena. However, Atlantic Grupa dd is 2.33 times less risky than Podravka Prehrambena. It trades about -0.1 of its potential returns per unit of risk. Podravka Prehrambena Industrija is currently generating about -0.19 per unit of risk. If you would invest 5,200 in Atlantic Grupa dd on September 12, 2024 and sell it today you would lose (100.00) from holding Atlantic Grupa dd or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Atlantic Grupa dd vs. Podravka Prehrambena Industrij
Performance |
| Timeline |
| Atlantic Grupa dd |
| Podravka Prehrambena |
Atlantic Grupa and Podravka Prehrambena Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic Grupa and Podravka Prehrambena
The main advantage of trading using opposite Atlantic Grupa and Podravka Prehrambena positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Grupa position performs unexpectedly, Podravka Prehrambena 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 Podravka Prehrambena will offset losses from the drop in Podravka Prehrambena'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 |
| Podravka Prehrambena vs. Dalekovod dd | Podravka Prehrambena vs. Institut IGH dd | Podravka Prehrambena vs. Jadroplov dd | Podravka Prehrambena 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |