Correlation Between Carlson Investments and Centrum Finansowe
Can any of the company-specific risk be diversified away by investing in both Carlson Investments and Centrum Finansowe 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 Carlson Investments and Centrum Finansowe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlson Investments SA and Centrum Finansowe Banku, you can compare the effects of market volatilities on Carlson Investments and Centrum Finansowe 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 Carlson Investments with a short position of Centrum Finansowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlson Investments and Centrum Finansowe.
Diversification Opportunities for Carlson Investments and Centrum Finansowe
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carlson and Centrum is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Carlson Investments SA and Centrum Finansowe Banku in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centrum Finansowe Banku and Carlson Investments 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 Carlson Investments SA are associated (or correlated) with Centrum Finansowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centrum Finansowe Banku has no effect on the direction of Carlson Investments i.e., Carlson Investments and Centrum Finansowe go up and down completely randomly.
Pair Corralation between Carlson Investments and Centrum Finansowe
Assuming the 90 days trading horizon Carlson Investments SA is expected to under-perform the Centrum Finansowe. In addition to that, Carlson Investments is 1.07 times more volatile than Centrum Finansowe Banku. It trades about -0.27 of its total potential returns per unit of risk. Centrum Finansowe Banku is currently generating about 0.03 per unit of volatility. If you would invest 555.00 in Centrum Finansowe Banku on August 24, 2024 and sell it today you would earn a total of 5.00 from holding Centrum Finansowe Banku or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlson Investments SA vs. Centrum Finansowe Banku
Performance |
| Timeline |
| Carlson Investments |
| Centrum Finansowe Banku |
Carlson Investments and Centrum Finansowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlson Investments and Centrum Finansowe
The main advantage of trading using opposite Carlson Investments and Centrum Finansowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlson Investments position performs unexpectedly, Centrum Finansowe 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 Centrum Finansowe will offset losses from the drop in Centrum Finansowe's long position.| Carlson Investments vs. Centrum Finansowe Banku | Carlson Investments vs. Asseco Business Solutions | Carlson Investments vs. Detalion Games SA | Carlson Investments vs. Asseco South Eastern |
| Centrum Finansowe vs. UniCredit SpA | Centrum Finansowe vs. Bank Millennium SA | Centrum Finansowe vs. ING Bank lski | Centrum Finansowe vs. mBank 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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