Correlation Between Cez AS and Kofola CeskoSlovensko
Can any of the company-specific risk be diversified away by investing in both Cez AS and Kofola CeskoSlovensko 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 Kofola CeskoSlovensko into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cez AS and Kofola CeskoSlovensko as, you can compare the effects of market volatilities on Cez AS and Kofola CeskoSlovensko 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 Kofola CeskoSlovensko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cez AS and Kofola CeskoSlovensko.
Diversification Opportunities for Cez AS and Kofola CeskoSlovensko
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cez and Kofola is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cez AS and Kofola CeskoSlovensko as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kofola CeskoSlovensko 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 Kofola CeskoSlovensko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kofola CeskoSlovensko has no effect on the direction of Cez AS i.e., Cez AS and Kofola CeskoSlovensko go up and down completely randomly.
Pair Corralation between Cez AS and Kofola CeskoSlovensko
Assuming the 90 days trading horizon Cez AS is expected to generate 2.23 times more return on investment than Kofola CeskoSlovensko. However, Cez AS is 2.23 times more volatile than Kofola CeskoSlovensko as. It trades about 0.31 of its potential returns per unit of risk. Kofola CeskoSlovensko as is currently generating about 0.22 per unit of risk. If you would invest 96,700 in Cez AS on November 3, 2024 and sell it today you would earn a total of 9,700 from holding Cez AS or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cez AS vs. Kofola CeskoSlovensko as
Performance |
| Timeline |
| Cez AS |
| Kofola CeskoSlovensko |
Cez AS and Kofola CeskoSlovensko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cez AS and Kofola CeskoSlovensko
The main advantage of trading using opposite Cez AS and Kofola CeskoSlovensko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cez AS position performs unexpectedly, Kofola CeskoSlovensko 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 Kofola CeskoSlovensko will offset losses from the drop in Kofola CeskoSlovensko'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 |
| Kofola CeskoSlovensko vs. Moneta Money Bank | Kofola CeskoSlovensko vs. Komercni Banka AS | Kofola CeskoSlovensko vs. Cez AS | Kofola CeskoSlovensko vs. Erste Group Bank |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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