Correlation Between Bezvavlasy and Photon Energy
Can any of the company-specific risk be diversified away by investing in both Bezvavlasy and Photon Energy 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 Bezvavlasy and Photon Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bezvavlasy as and Photon Energy NV, you can compare the effects of market volatilities on Bezvavlasy and Photon Energy 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 Bezvavlasy with a short position of Photon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bezvavlasy and Photon Energy.
Diversification Opportunities for Bezvavlasy and Photon Energy
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bezvavlasy and Photon is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bezvavlasy as and Photon Energy NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photon Energy NV and Bezvavlasy 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 Bezvavlasy as are associated (or correlated) with Photon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photon Energy NV has no effect on the direction of Bezvavlasy i.e., Bezvavlasy and Photon Energy go up and down completely randomly.
Pair Corralation between Bezvavlasy and Photon Energy
Assuming the 90 days trading horizon Bezvavlasy is expected to generate 5.07 times less return on investment than Photon Energy. But when comparing it to its historical volatility, Bezvavlasy as is 5.87 times less risky than Photon Energy. It trades about 0.17 of its potential returns per unit of risk. Photon Energy NV is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,430 in Photon Energy NV on November 3, 2024 and sell it today you would earn a total of 170.00 from holding Photon Energy NV or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bezvavlasy as vs. Photon Energy NV
Performance |
| Timeline |
| Bezvavlasy as |
| Photon Energy NV |
Bezvavlasy and Photon Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bezvavlasy and Photon Energy
The main advantage of trading using opposite Bezvavlasy and Photon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bezvavlasy position performs unexpectedly, Photon Energy 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 Photon Energy will offset losses from the drop in Photon Energy's long position.| Bezvavlasy vs. UNIQA Insurance Group | Bezvavlasy vs. Komercni Banka AS | Bezvavlasy vs. Vienna Insurance Group | Bezvavlasy vs. JT ARCH INVESTMENTS |
| Photon Energy vs. Vienna Insurance Group | Photon Energy vs. Raiffeisen Bank International | Photon Energy vs. UNIQA Insurance Group |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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