Correlation Between Betacom SA and Poznanska Korporacja
Can any of the company-specific risk be diversified away by investing in both Betacom SA and Poznanska Korporacja 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 Betacom SA and Poznanska Korporacja into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Betacom SA and Poznanska Korporacja Budowlana, you can compare the effects of market volatilities on Betacom SA and Poznanska Korporacja 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 Betacom SA with a short position of Poznanska Korporacja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Betacom SA and Poznanska Korporacja.
Diversification Opportunities for Betacom SA and Poznanska Korporacja
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Betacom and Poznanska is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Betacom SA and Poznanska Korporacja Budowlana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poznanska Korporacja and Betacom SA 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 Betacom SA are associated (or correlated) with Poznanska Korporacja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poznanska Korporacja has no effect on the direction of Betacom SA i.e., Betacom SA and Poznanska Korporacja go up and down completely randomly.
Pair Corralation between Betacom SA and Poznanska Korporacja
Assuming the 90 days trading horizon Betacom SA is expected to generate 1.03 times more return on investment than Poznanska Korporacja. However, Betacom SA is 1.03 times more volatile than Poznanska Korporacja Budowlana. It trades about 0.04 of its potential returns per unit of risk. Poznanska Korporacja Budowlana is currently generating about 0.03 per unit of risk. If you would invest 317.00 in Betacom SA on August 24, 2024 and sell it today you would earn a total of 119.00 from holding Betacom SA or generate 37.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Betacom SA vs. Poznanska Korporacja Budowlana
Performance |
| Timeline |
| Betacom SA |
| Poznanska Korporacja |
Betacom SA and Poznanska Korporacja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Betacom SA and Poznanska Korporacja
The main advantage of trading using opposite Betacom SA and Poznanska Korporacja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Betacom SA position performs unexpectedly, Poznanska Korporacja 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 Poznanska Korporacja will offset losses from the drop in Poznanska Korporacja's long position.| Betacom SA vs. Asseco Business Solutions | Betacom SA vs. Detalion Games SA | Betacom SA vs. Asseco South Eastern | Betacom SA vs. Movie Games SA |
| Poznanska Korporacja vs. Asseco Business Solutions | Poznanska Korporacja vs. Detalion Games SA | Poznanska Korporacja vs. Asseco South Eastern | Poznanska Korporacja vs. Movie Games 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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