Correlation Between Carlson Investments and Intersport Polska
Can any of the company-specific risk be diversified away by investing in both Carlson Investments and Intersport Polska 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 Intersport Polska 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 Intersport Polska SA, you can compare the effects of market volatilities on Carlson Investments and Intersport Polska 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 Intersport Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlson Investments and Intersport Polska.
Diversification Opportunities for Carlson Investments and Intersport Polska
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Carlson and Intersport is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Carlson Investments SA and Intersport Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intersport Polska 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 Intersport Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intersport Polska has no effect on the direction of Carlson Investments i.e., Carlson Investments and Intersport Polska go up and down completely randomly.
Pair Corralation between Carlson Investments and Intersport Polska
Assuming the 90 days trading horizon Carlson Investments SA is expected to generate 1.1 times more return on investment than Intersport Polska. However, Carlson Investments is 1.1 times more volatile than Intersport Polska SA. It trades about 0.04 of its potential returns per unit of risk. Intersport Polska SA is currently generating about 0.04 per unit of risk. If you would invest 448.00 in Carlson Investments SA on August 25, 2024 and sell it today you would earn a total of 9.00 from holding Carlson Investments SA or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Carlson Investments SA vs. Intersport Polska SA
Performance |
| Timeline |
| Carlson Investments |
| Intersport Polska |
Carlson Investments and Intersport Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlson Investments and Intersport Polska
The main advantage of trading using opposite Carlson Investments and Intersport Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlson Investments position performs unexpectedly, Intersport Polska 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 Intersport Polska will offset losses from the drop in Intersport Polska'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 |
| Intersport Polska vs. Asseco Business Solutions | Intersport Polska vs. Detalion Games SA | Intersport Polska vs. Asseco South Eastern | Intersport Polska 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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