Correlation Between Bank Ochrony and True Games
Can any of the company-specific risk be diversified away by investing in both Bank Ochrony and True Games 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 Bank Ochrony and True Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Ochrony rodowiska and True Games Syndicate, you can compare the effects of market volatilities on Bank Ochrony and True Games 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 Bank Ochrony with a short position of True Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Ochrony and True Games.
Diversification Opportunities for Bank Ochrony and True Games
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and True is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bank Ochrony rodowiska and True Games Syndicate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on True Games Syndicate and Bank Ochrony 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 Bank Ochrony rodowiska are associated (or correlated) with True Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of True Games Syndicate has no effect on the direction of Bank Ochrony i.e., Bank Ochrony and True Games go up and down completely randomly.
Pair Corralation between Bank Ochrony and True Games
Assuming the 90 days trading horizon Bank Ochrony is expected to generate 3.19 times less return on investment than True Games. But when comparing it to its historical volatility, Bank Ochrony rodowiska is 2.49 times less risky than True Games. It trades about 0.02 of its potential returns per unit of risk. True Games Syndicate is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 45.00 in True Games Syndicate on September 12, 2024 and sell it today you would lose (5.00) from holding True Games Syndicate or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 82.59% |
| Values | Daily Returns |
Bank Ochrony rodowiska vs. True Games Syndicate
Performance |
| Timeline |
| Bank Ochrony rodowiska |
| True Games Syndicate |
Bank Ochrony and True Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Ochrony and True Games
The main advantage of trading using opposite Bank Ochrony and True Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Ochrony position performs unexpectedly, True Games 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 True Games will offset losses from the drop in True Games' long position.| Bank Ochrony vs. Play2Chill SA | Bank Ochrony vs. ING Bank lski | Bank Ochrony vs. Skyline Investment SA | Bank Ochrony vs. X Trade Brokers |
| True Games vs. Clean Carbon Energy | True Games vs. ADX | True Games vs. Agroliga Group PLC | True Games vs. Vee 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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