Correlation Between Centrum Finansowe and Skyline Investment
Can any of the company-specific risk be diversified away by investing in both Centrum Finansowe and Skyline Investment 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 Skyline Investment 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 Skyline Investment SA, you can compare the effects of market volatilities on Centrum Finansowe and Skyline Investment 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 Skyline Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrum Finansowe and Skyline Investment.
Diversification Opportunities for Centrum Finansowe and Skyline Investment
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Centrum and Skyline is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Centrum Finansowe Banku and Skyline Investment SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skyline Investment 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 Skyline Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skyline Investment has no effect on the direction of Centrum Finansowe i.e., Centrum Finansowe and Skyline Investment go up and down completely randomly.
Pair Corralation between Centrum Finansowe and Skyline Investment
Assuming the 90 days trading horizon Centrum Finansowe Banku is expected to under-perform the Skyline Investment. In addition to that, Centrum Finansowe is 1.15 times more volatile than Skyline Investment SA. It trades about -0.1 of its total potential returns per unit of risk. Skyline Investment SA is currently generating about -0.07 per unit of volatility. If you would invest 155.00 in Skyline Investment SA on September 4, 2024 and sell it today you would lose (7.00) from holding Skyline Investment SA or give up 4.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Centrum Finansowe Banku vs. Skyline Investment SA
Performance |
| Timeline |
| Centrum Finansowe Banku |
| Skyline Investment |
Centrum Finansowe and Skyline Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrum Finansowe and Skyline Investment
The main advantage of trading using opposite Centrum Finansowe and Skyline Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrum Finansowe position performs unexpectedly, Skyline Investment 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 Skyline Investment will offset losses from the drop in Skyline Investment'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 |
| Skyline Investment vs. X Trade Brokers | Skyline Investment vs. Novavis Group SA | Skyline Investment vs. Asseco Business Solutions | Skyline Investment vs. Kogeneracja 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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