Correlation Between Centrum Finansowe and Polski Koncern
Can any of the company-specific risk be diversified away by investing in both Centrum Finansowe and Polski Koncern 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 Polski Koncern 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 Polski Koncern Naftowy, you can compare the effects of market volatilities on Centrum Finansowe and Polski Koncern 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 Polski Koncern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrum Finansowe and Polski Koncern.
Diversification Opportunities for Centrum Finansowe and Polski Koncern
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Centrum and Polski is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Centrum Finansowe Banku and Polski Koncern Naftowy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polski Koncern Naftowy 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 Polski Koncern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polski Koncern Naftowy has no effect on the direction of Centrum Finansowe i.e., Centrum Finansowe and Polski Koncern go up and down completely randomly.
Pair Corralation between Centrum Finansowe and Polski Koncern
Assuming the 90 days trading horizon Centrum Finansowe Banku is expected to generate 1.4 times more return on investment than Polski Koncern. However, Centrum Finansowe is 1.4 times more volatile than Polski Koncern Naftowy. It trades about 0.05 of its potential returns per unit of risk. Polski Koncern Naftowy is currently generating about 0.01 per unit of risk. If you would invest 341.00 in Centrum Finansowe Banku on November 2, 2024 and sell it today you would earn a total of 199.00 from holding Centrum Finansowe Banku or generate 58.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Centrum Finansowe Banku vs. Polski Koncern Naftowy
Performance |
| Timeline |
| Centrum Finansowe Banku |
| Polski Koncern Naftowy |
Centrum Finansowe and Polski Koncern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrum Finansowe and Polski Koncern
The main advantage of trading using opposite Centrum Finansowe and Polski Koncern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrum Finansowe position performs unexpectedly, Polski Koncern 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 Polski Koncern will offset losses from the drop in Polski Koncern's long position.| Centrum Finansowe vs. Alior Bank SA | Centrum Finansowe vs. Skyline Investment SA | Centrum Finansowe vs. UniCredit SpA | Centrum Finansowe vs. Mercator Medical SA |
| Polski Koncern vs. Santander Bank Polska | Polski Koncern vs. M Food SA | Polski Koncern vs. Movie Games SA | Polski Koncern vs. PZ Cormay 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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