Correlation Between Cez AS and Fillamentum
Can any of the company-specific risk be diversified away by investing in both Cez AS and Fillamentum 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 Fillamentum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cez AS and Fillamentum as, you can compare the effects of market volatilities on Cez AS and Fillamentum 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 Fillamentum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cez AS and Fillamentum.
Diversification Opportunities for Cez AS and Fillamentum
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cez and Fillamentum is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Cez AS and Fillamentum as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fillamentum as 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 Fillamentum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fillamentum as has no effect on the direction of Cez AS i.e., Cez AS and Fillamentum go up and down completely randomly.
Pair Corralation between Cez AS and Fillamentum
If you would invest 90,100 in Cez AS on August 25, 2024 and sell it today you would earn a total of 6,050 from holding Cez AS or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cez AS vs. Fillamentum as
Performance |
| Timeline |
| Cez AS |
| Fillamentum as |
Cez AS and Fillamentum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cez AS and Fillamentum
The main advantage of trading using opposite Cez AS and Fillamentum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cez AS position performs unexpectedly, Fillamentum 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 Fillamentum will offset losses from the drop in Fillamentum'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 |
| Fillamentum vs. Volkswagen AG | Fillamentum vs. GEVORKYAN as | Fillamentum vs. Philip Morris CR | Fillamentum 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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