Correlation Between Centrum Finansowe and Shoper SA
Can any of the company-specific risk be diversified away by investing in both Centrum Finansowe and Shoper 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 Shoper 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 Shoper SA, you can compare the effects of market volatilities on Centrum Finansowe and Shoper 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 Shoper SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrum Finansowe and Shoper SA.
Diversification Opportunities for Centrum Finansowe and Shoper SA
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Centrum and Shoper is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Centrum Finansowe Banku and Shoper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shoper 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 Shoper SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shoper SA has no effect on the direction of Centrum Finansowe i.e., Centrum Finansowe and Shoper SA go up and down completely randomly.
Pair Corralation between Centrum Finansowe and Shoper SA
Assuming the 90 days trading horizon Centrum Finansowe Banku is expected to generate 0.81 times more return on investment than Shoper SA. However, Centrum Finansowe Banku is 1.24 times less risky than Shoper SA. It trades about 0.1 of its potential returns per unit of risk. Shoper SA is currently generating about 0.03 per unit of risk. If you would invest 456.00 in Centrum Finansowe Banku on September 5, 2024 and sell it today you would earn a total of 114.00 from holding Centrum Finansowe Banku or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centrum Finansowe Banku vs. Shoper SA
Performance |
| Timeline |
| Centrum Finansowe Banku |
| Shoper SA |
Centrum Finansowe and Shoper SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrum Finansowe and Shoper SA
The main advantage of trading using opposite Centrum Finansowe and Shoper SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrum Finansowe position performs unexpectedly, Shoper 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 Shoper SA will offset losses from the drop in Shoper SA's long position.| Centrum Finansowe vs. Carlson Investments SA | Centrum Finansowe vs. Asseco Business Solutions | Centrum Finansowe vs. Kogeneracja SA | Centrum Finansowe vs. Asseco South Eastern |
| Shoper SA vs. Marie Brizard Wine | Shoper SA vs. UF Games SA | Shoper SA vs. Centrum Finansowe Banku | Shoper SA vs. ING Bank lski |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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