Correlation Between CEZ As and 11 Bit
Can any of the company-specific risk be diversified away by investing in both CEZ As and 11 Bit 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 11 Bit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEZ as and 11 bit studios, you can compare the effects of market volatilities on CEZ As and 11 Bit 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 11 Bit. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEZ As and 11 Bit.
Diversification Opportunities for CEZ As and 11 Bit
Excellent diversification
The 3 months correlation between CEZ and 11B is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding CEZ as and 11 bit studios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 11 bit studios 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 11 Bit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 11 bit studios has no effect on the direction of CEZ As i.e., CEZ As and 11 Bit go up and down completely randomly.
Pair Corralation between CEZ As and 11 Bit
Assuming the 90 days trading horizon CEZ as is expected to generate 0.53 times more return on investment than 11 Bit. However, CEZ as is 1.88 times less risky than 11 Bit. It trades about 0.02 of its potential returns per unit of risk. 11 bit studios is currently generating about -0.07 per unit of risk. If you would invest 15,772 in CEZ as on September 2, 2024 and sell it today you would earn a total of 678.00 from holding CEZ as or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEZ as vs. 11 bit studios
Performance |
| Timeline |
| CEZ as |
| 11 bit studios |
CEZ As and 11 Bit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEZ As and 11 Bit
The main advantage of trading using opposite CEZ As and 11 Bit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEZ As position performs unexpectedly, 11 Bit 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 11 Bit will offset losses from the drop in 11 Bit's long position.| CEZ As vs. Asseco Business Solutions | CEZ As vs. Detalion Games SA | CEZ As vs. Asseco South Eastern | CEZ As vs. CFI Holding SA |
| 11 Bit vs. Immobile | 11 Bit vs. Marie Brizard Wine | 11 Bit vs. Live Motion Games | 11 Bit vs. Igoria Trade 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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