Correlation Between Centrum Finansowe and Baked Games
Can any of the company-specific risk be diversified away by investing in both Centrum Finansowe and Baked Games 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 Centrum Finansowe and Baked Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centrum Finansowe Banku and Baked Games SA, you can compare the effects of market volatilities on Centrum Finansowe and Baked Games 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 Centrum Finansowe with a short position of Baked Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrum Finansowe and Baked Games.
Diversification Opportunities for Centrum Finansowe and Baked Games
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Centrum and Baked is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Centrum Finansowe Banku and Baked Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baked Games SA and Centrum Finansowe 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 Centrum Finansowe Banku are associated (or correlated) with Baked Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baked Games SA has no effect on the direction of Centrum Finansowe i.e., Centrum Finansowe and Baked Games go up and down completely randomly.
Pair Corralation between Centrum Finansowe and Baked Games
Assuming the 90 days trading horizon Centrum Finansowe Banku is expected to generate 0.97 times more return on investment than Baked Games. However, Centrum Finansowe Banku is 1.03 times less risky than Baked Games. It trades about 0.01 of its potential returns per unit of risk. Baked Games SA is currently generating about -0.13 per unit of risk. If you would invest 520.00 in Centrum Finansowe Banku on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Centrum Finansowe Banku or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Centrum Finansowe Banku vs. Baked Games SA
Performance |
| Timeline |
| Centrum Finansowe Banku |
| Baked Games SA |
Centrum Finansowe and Baked Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrum Finansowe and Baked Games
The main advantage of trading using opposite Centrum Finansowe and Baked Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrum Finansowe position performs unexpectedly, Baked Games 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 Baked Games will offset losses from the drop in Baked Games' long position.| Centrum Finansowe vs. Skyline Investment SA | Centrum Finansowe vs. Quantum Software SA | Centrum Finansowe vs. X Trade Brokers | Centrum Finansowe vs. Investment Friends Capital |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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