Correlation Between Centrum Finansowe and ED Invest
Can any of the company-specific risk be diversified away by investing in both Centrum Finansowe and ED Invest 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 ED Invest 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 ED Invest SA, you can compare the effects of market volatilities on Centrum Finansowe and ED Invest 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 ED Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrum Finansowe and ED Invest.
Diversification Opportunities for Centrum Finansowe and ED Invest
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Centrum and EDI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Centrum Finansowe Banku and ED Invest SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ED Invest 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 ED Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ED Invest SA has no effect on the direction of Centrum Finansowe i.e., Centrum Finansowe and ED Invest go up and down completely randomly.
Pair Corralation between Centrum Finansowe and ED Invest
Assuming the 90 days trading horizon Centrum Finansowe Banku is expected to generate 1.26 times more return on investment than ED Invest. However, Centrum Finansowe is 1.26 times more volatile than ED Invest SA. It trades about 0.05 of its potential returns per unit of risk. ED Invest SA is currently generating about -0.04 per unit of risk. If you would invest 570.00 in Centrum Finansowe Banku on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Centrum Finansowe Banku or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centrum Finansowe Banku vs. ED Invest SA
Performance |
| Timeline |
| Centrum Finansowe Banku |
| ED Invest SA |
Centrum Finansowe and ED Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrum Finansowe and ED Invest
The main advantage of trading using opposite Centrum Finansowe and ED Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrum Finansowe position performs unexpectedly, ED Invest 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 ED Invest will offset losses from the drop in ED Invest's long position.| Centrum Finansowe vs. Carlson Investments SA | Centrum Finansowe vs. Asseco Business Solutions | Centrum Finansowe vs. Detalion Games SA | Centrum Finansowe vs. Asseco South Eastern |
| ED Invest vs. Live Motion Games | ED Invest vs. Centrum Finansowe Banku | ED Invest vs. UF Games SA | ED Invest vs. Globe Trade Centre |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |