Correlation Between Cez AS and Coloseum Holding
Can any of the company-specific risk be diversified away by investing in both Cez AS and Coloseum Holding 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 Cez AS and Coloseum Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cez AS and Coloseum Holding as, you can compare the effects of market volatilities on Cez AS and Coloseum Holding 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 Cez AS with a short position of Coloseum Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cez AS and Coloseum Holding.
Diversification Opportunities for Cez AS and Coloseum Holding
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cez and Coloseum is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cez AS and Coloseum Holding as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coloseum Holding and Cez AS 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 Cez AS are associated (or correlated) with Coloseum Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coloseum Holding has no effect on the direction of Cez AS i.e., Cez AS and Coloseum Holding go up and down completely randomly.
Pair Corralation between Cez AS and Coloseum Holding
Assuming the 90 days trading horizon Cez AS is expected to generate 0.25 times more return on investment than Coloseum Holding. However, Cez AS is 3.99 times less risky than Coloseum Holding. It trades about 0.08 of its potential returns per unit of risk. Coloseum Holding as is currently generating about -0.01 per unit of risk. If you would invest 59,950 in Cez AS on August 29, 2024 and sell it today you would earn a total of 37,350 from holding Cez AS or generate 62.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cez AS vs. Coloseum Holding as
Performance |
| Timeline |
| Cez AS |
| Coloseum Holding |
Cez AS and Coloseum Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cez AS and Coloseum Holding
The main advantage of trading using opposite Cez AS and Coloseum Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cez AS position performs unexpectedly, Coloseum Holding 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 Coloseum Holding will offset losses from the drop in Coloseum Holding's long position.| Cez AS vs. Komercni Banka AS | Cez AS vs. Moneta Money Bank | Cez AS vs. Erste Group Bank | Cez AS vs. Colt CZ Group |
| Coloseum Holding vs. Volkswagen AG | Coloseum Holding vs. GEVORKYAN as | Coloseum Holding vs. Philip Morris CR | Coloseum Holding vs. Prabos Plus as |
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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