Correlation Between CEZ As and Maxcom SA
Can any of the company-specific risk be diversified away by investing in both CEZ As and Maxcom SA 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 Maxcom SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEZ as and Maxcom SA, you can compare the effects of market volatilities on CEZ As and Maxcom SA 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 Maxcom SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEZ As and Maxcom SA.
Diversification Opportunities for CEZ As and Maxcom SA
Excellent diversification
The 3 months correlation between CEZ and Maxcom is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding CEZ as and Maxcom SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxcom 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 Maxcom SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxcom SA has no effect on the direction of CEZ As i.e., CEZ As and Maxcom SA go up and down completely randomly.
Pair Corralation between CEZ As and Maxcom SA
Assuming the 90 days trading horizon CEZ as is expected to generate 0.97 times more return on investment than Maxcom SA. However, CEZ as is 1.03 times less risky than Maxcom SA. It trades about 0.04 of its potential returns per unit of risk. Maxcom SA is currently generating about -0.09 per unit of risk. If you would invest 15,555 in CEZ as on September 1, 2024 and sell it today you would earn a total of 895.00 from holding CEZ as or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
CEZ as vs. Maxcom SA
Performance |
| Timeline |
| CEZ as |
| Maxcom SA |
CEZ As and Maxcom SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEZ As and Maxcom SA
The main advantage of trading using opposite CEZ As and Maxcom SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEZ As position performs unexpectedly, Maxcom SA 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 Maxcom SA will offset losses from the drop in Maxcom SA's long position.| CEZ As vs. SOFTWARE MANSION SPOLKA | CEZ As vs. LSI Software SA | CEZ As vs. PMPG Polskie Media | CEZ As vs. Globe Trade Centre |
| Maxcom SA vs. Banco Santander SA | Maxcom SA vs. UniCredit SpA | Maxcom SA vs. CEZ as | Maxcom SA vs. Polski Koncern Naftowy |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |