Correlation Between Centrum Finansowe and Carlson Investments
Can any of the company-specific risk be diversified away by investing in both Centrum Finansowe and Carlson Investments 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 Carlson Investments 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 Carlson Investments SA, you can compare the effects of market volatilities on Centrum Finansowe and Carlson Investments 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 Carlson Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrum Finansowe and Carlson Investments.
Diversification Opportunities for Centrum Finansowe and Carlson Investments
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Centrum and Carlson is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Centrum Finansowe Banku and Carlson Investments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlson Investments 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 Carlson Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlson Investments has no effect on the direction of Centrum Finansowe i.e., Centrum Finansowe and Carlson Investments go up and down completely randomly.
Pair Corralation between Centrum Finansowe and Carlson Investments
Assuming the 90 days trading horizon Centrum Finansowe Banku is expected to generate 0.55 times more return on investment than Carlson Investments. However, Centrum Finansowe Banku is 1.82 times less risky than Carlson Investments. It trades about 0.05 of its potential returns per unit of risk. Carlson Investments SA is currently generating about -0.08 per unit of risk. If you would invest 356.00 in Centrum Finansowe Banku on August 24, 2024 and sell it today you would earn a total of 204.00 from holding Centrum Finansowe Banku or generate 57.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 99.8% |
Values | Daily Returns |
Centrum Finansowe Banku vs. Carlson Investments SA
Performance |
Timeline |
Centrum Finansowe Banku |
Carlson Investments |
Centrum Finansowe and Carlson Investments Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Centrum Finansowe and Carlson Investments
The main advantage of trading using opposite Centrum Finansowe and Carlson Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrum Finansowe position performs unexpectedly, Carlson Investments 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 Carlson Investments will offset losses from the drop in Carlson Investments' long position.Centrum Finansowe vs. UniCredit SpA | Centrum Finansowe vs. Bank Millennium SA | Centrum Finansowe vs. ING Bank lski | Centrum Finansowe vs. mBank SA |
Carlson Investments vs. Centrum Finansowe Banku | Carlson Investments vs. Asseco Business Solutions | Carlson Investments vs. Detalion Games SA | Carlson Investments vs. Asseco South Eastern |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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