Correlation Between Biztech Konsulting and Polski Koncern
Can any of the company-specific risk be diversified away by investing in both Biztech Konsulting and Polski Koncern 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 Biztech Konsulting and Polski Koncern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biztech Konsulting SA and Polski Koncern Naftowy, you can compare the effects of market volatilities on Biztech Konsulting and Polski Koncern 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 Biztech Konsulting with a short position of Polski Koncern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biztech Konsulting and Polski Koncern.
Diversification Opportunities for Biztech Konsulting and Polski Koncern
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Biztech and Polski is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Biztech Konsulting SA and Polski Koncern Naftowy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polski Koncern Naftowy and Biztech Konsulting 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 Biztech Konsulting SA are associated (or correlated) with Polski Koncern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polski Koncern Naftowy has no effect on the direction of Biztech Konsulting i.e., Biztech Konsulting and Polski Koncern go up and down completely randomly.
Pair Corralation between Biztech Konsulting and Polski Koncern
Assuming the 90 days trading horizon Biztech Konsulting SA is expected to generate 2.59 times more return on investment than Polski Koncern. However, Biztech Konsulting is 2.59 times more volatile than Polski Koncern Naftowy. It trades about 0.01 of its potential returns per unit of risk. Polski Koncern Naftowy is currently generating about -0.01 per unit of risk. If you would invest 24.00 in Biztech Konsulting SA on September 29, 2024 and sell it today you would lose (5.00) from holding Biztech Konsulting SA or give up 20.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.28% |
| Values | Daily Returns |
Biztech Konsulting SA vs. Polski Koncern Naftowy
Performance |
| Timeline |
| Biztech Konsulting |
| Polski Koncern Naftowy |
Biztech Konsulting and Polski Koncern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biztech Konsulting and Polski Koncern
The main advantage of trading using opposite Biztech Konsulting and Polski Koncern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biztech Konsulting position performs unexpectedly, Polski Koncern 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 Polski Koncern will offset losses from the drop in Polski Koncern's long position.| Biztech Konsulting vs. Clean Carbon Energy | Biztech Konsulting vs. ADX | Biztech Konsulting vs. Agroliga Group PLC | Biztech Konsulting vs. Vee SA |
| Polski Koncern vs. ING Bank lski | Polski Koncern vs. Echo Investment SA | Polski Koncern vs. Centrum Finansowe Banku | Polski Koncern vs. Noble Financials 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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