Correlation Between Carlson Investments and Jastrzebska Spotka
Can any of the company-specific risk be diversified away by investing in both Carlson Investments and Jastrzebska Spotka 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 Jastrzebska Spotka 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 Jastrzebska Spotka Weglowa, you can compare the effects of market volatilities on Carlson Investments and Jastrzebska Spotka 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 Jastrzebska Spotka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlson Investments and Jastrzebska Spotka.
Diversification Opportunities for Carlson Investments and Jastrzebska Spotka
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Carlson and Jastrzebska is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Carlson Investments SA and Jastrzebska Spotka Weglowa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jastrzebska Spotka 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 Jastrzebska Spotka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jastrzebska Spotka has no effect on the direction of Carlson Investments i.e., Carlson Investments and Jastrzebska Spotka go up and down completely randomly.
Pair Corralation between Carlson Investments and Jastrzebska Spotka
Assuming the 90 days trading horizon Carlson Investments SA is expected to generate 3.93 times more return on investment than Jastrzebska Spotka. However, Carlson Investments is 3.93 times more volatile than Jastrzebska Spotka Weglowa. It trades about 0.29 of its potential returns per unit of risk. Jastrzebska Spotka Weglowa is currently generating about 0.13 per unit of risk. If you would invest 373.00 in Carlson Investments SA on November 4, 2024 and sell it today you would earn a total of 247.00 from holding Carlson Investments SA or generate 66.22% 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. Jastrzebska Spotka Weglowa
Performance |
| Timeline |
| Carlson Investments |
| Jastrzebska Spotka |
Carlson Investments and Jastrzebska Spotka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlson Investments and Jastrzebska Spotka
The main advantage of trading using opposite Carlson Investments and Jastrzebska Spotka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlson Investments position performs unexpectedly, Jastrzebska Spotka 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 Jastrzebska Spotka will offset losses from the drop in Jastrzebska Spotka's long position.| Carlson Investments vs. Centrum Finansowe Banku | Carlson Investments vs. Santander Bank Polska | Carlson Investments vs. Asseco South Eastern | Carlson Investments vs. Vercom SA |
| Jastrzebska Spotka vs. Quantum Software SA | Jastrzebska Spotka vs. UniCredit SpA | Jastrzebska Spotka vs. Bank Millennium SA | Jastrzebska Spotka vs. Alior Bank 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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