Correlation Between CEZ As and Grupa HRC
Can any of the company-specific risk be diversified away by investing in both CEZ As and Grupa HRC 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 Grupa HRC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEZ as and Grupa HRC SA, you can compare the effects of market volatilities on CEZ As and Grupa HRC 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 Grupa HRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEZ As and Grupa HRC.
Diversification Opportunities for CEZ As and Grupa HRC
Pay attention - limited upside
The 3 months correlation between CEZ and Grupa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CEZ as and Grupa HRC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupa HRC SA 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 Grupa HRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupa HRC SA has no effect on the direction of CEZ As i.e., CEZ As and Grupa HRC go up and down completely randomly.
Pair Corralation between CEZ As and Grupa HRC
If you would invest 15,390 in CEZ as on August 30, 2024 and sell it today you would earn a total of 920.00 from holding CEZ as or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
CEZ as vs. Grupa HRC SA
Performance |
| Timeline |
| CEZ as |
| Grupa HRC SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CEZ As and Grupa HRC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEZ As and Grupa HRC
The main advantage of trading using opposite CEZ As and Grupa HRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEZ As position performs unexpectedly, Grupa HRC 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 Grupa HRC will offset losses from the drop in Grupa HRC's long position.| CEZ As vs. Asseco Business Solutions | CEZ As vs. Detalion Games SA | CEZ As vs. CFI Holding SA | CEZ As vs. HM Inwest SA |
| Grupa HRC vs. Alior Bank SA | Grupa HRC vs. Movie Games SA | Grupa HRC vs. mBank SA | Grupa HRC vs. ING Bank lski |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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