Correlation Between CEZ As and Bank Ochrony
Can any of the company-specific risk be diversified away by investing in both CEZ As and Bank Ochrony 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 Bank Ochrony into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEZ as and Bank Ochrony rodowiska, you can compare the effects of market volatilities on CEZ As and Bank Ochrony 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 Bank Ochrony. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEZ As and Bank Ochrony.
Diversification Opportunities for CEZ As and Bank Ochrony
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CEZ and Bank is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding CEZ as and Bank Ochrony rodowiska in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Ochrony rodowiska 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 Bank Ochrony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Ochrony rodowiska has no effect on the direction of CEZ As i.e., CEZ As and Bank Ochrony go up and down completely randomly.
Pair Corralation between CEZ As and Bank Ochrony
Assuming the 90 days trading horizon CEZ as is expected to generate 0.76 times more return on investment than Bank Ochrony. However, CEZ as is 1.31 times less risky than Bank Ochrony. It trades about 0.07 of its potential returns per unit of risk. Bank Ochrony rodowiska is currently generating about -0.13 per unit of risk. If you would invest 14,620 in CEZ as on August 31, 2024 and sell it today you would earn a total of 1,000.00 from holding CEZ as or generate 6.84% 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. Bank Ochrony rodowiska
Performance |
| Timeline |
| CEZ as |
| Bank Ochrony rodowiska |
CEZ As and Bank Ochrony Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEZ As and Bank Ochrony
The main advantage of trading using opposite CEZ As and Bank Ochrony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEZ As position performs unexpectedly, Bank Ochrony 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 Bank Ochrony will offset losses from the drop in Bank Ochrony'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 |
| Bank Ochrony vs. Globe Trade Centre | Bank Ochrony vs. Intersport Polska SA | Bank Ochrony vs. PZ Cormay SA | Bank Ochrony vs. Mercator Medical 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |