Correlation Between Centrum Finansowe and Enea SA
Can any of the company-specific risk be diversified away by investing in both Centrum Finansowe and Enea 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 Centrum Finansowe and Enea SA 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 Enea SA, you can compare the effects of market volatilities on Centrum Finansowe and Enea 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 Centrum Finansowe with a short position of Enea SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrum Finansowe and Enea SA.
Diversification Opportunities for Centrum Finansowe and Enea SA
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Centrum and Enea is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Centrum Finansowe Banku and Enea SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enea 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 Enea SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enea SA has no effect on the direction of Centrum Finansowe i.e., Centrum Finansowe and Enea SA go up and down completely randomly.
Pair Corralation between Centrum Finansowe and Enea SA
Assuming the 90 days trading horizon Centrum Finansowe Banku is expected to under-perform the Enea SA. In addition to that, Centrum Finansowe is 1.31 times more volatile than Enea SA. It trades about -0.09 of its total potential returns per unit of risk. Enea SA is currently generating about 0.22 per unit of volatility. If you would invest 1,300 in Enea SA on November 3, 2024 and sell it today you would earn a total of 99.00 from holding Enea SA or generate 7.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Centrum Finansowe Banku vs. Enea SA
Performance |
| Timeline |
| Centrum Finansowe Banku |
| Enea SA |
Centrum Finansowe and Enea SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrum Finansowe and Enea SA
The main advantage of trading using opposite Centrum Finansowe and Enea SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrum Finansowe position performs unexpectedly, Enea 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 Enea SA will offset losses from the drop in Enea SA's long position.| Centrum Finansowe vs. Carlson Investments SA | Centrum Finansowe vs. Santander Bank Polska | Centrum Finansowe vs. Asseco South Eastern | Centrum Finansowe vs. Vercom SA |
| Enea SA vs. Creativeforge Games SA | Enea SA vs. Ultimate Games SA | Enea SA vs. Investment Friends Capital | Enea SA vs. LSI Software 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |