Correlation Between CEZ As and New Tech
Can any of the company-specific risk be diversified away by investing in both CEZ As and New Tech 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 New Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEZ as and New Tech Venture, you can compare the effects of market volatilities on CEZ As and New Tech 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 New Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEZ As and New Tech.
Diversification Opportunities for CEZ As and New Tech
Very good diversification
The 3 months correlation between CEZ and New is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding CEZ as and New Tech Venture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Tech Venture 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 New Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Tech Venture has no effect on the direction of CEZ As i.e., CEZ As and New Tech go up and down completely randomly.
Pair Corralation between CEZ As and New Tech
Assuming the 90 days trading horizon CEZ as is expected to generate 0.82 times more return on investment than New Tech. However, CEZ as is 1.21 times less risky than New Tech. It trades about 0.03 of its potential returns per unit of risk. New Tech Venture is currently generating about 0.01 per unit of risk. If you would invest 15,470 in CEZ as on August 31, 2024 and sell it today you would earn a total of 150.00 from holding CEZ as or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 70.0% |
| Values | Daily Returns |
CEZ as vs. New Tech Venture
Performance |
| Timeline |
| CEZ as |
| New Tech Venture |
CEZ As and New Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEZ As and New Tech
The main advantage of trading using opposite CEZ As and New Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEZ As position performs unexpectedly, New Tech 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 New Tech will offset losses from the drop in New Tech'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 |
| New Tech vs. Asseco Business Solutions | New Tech vs. Detalion Games SA | New Tech vs. Asseco South Eastern | New Tech vs. CFI Holding 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |