Correlation Between Centrum Finansowe and Vee SA
Can any of the company-specific risk be diversified away by investing in both Centrum Finansowe and Vee 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 Vee 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 Vee SA, you can compare the effects of market volatilities on Centrum Finansowe and Vee 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 Vee SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrum Finansowe and Vee SA.
Diversification Opportunities for Centrum Finansowe and Vee SA
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Centrum and Vee is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Centrum Finansowe Banku and Vee SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vee 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 Vee SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vee SA has no effect on the direction of Centrum Finansowe i.e., Centrum Finansowe and Vee SA go up and down completely randomly.
Pair Corralation between Centrum Finansowe and Vee SA
Assuming the 90 days trading horizon Centrum Finansowe Banku is expected to under-perform the Vee SA. But the stock apears to be less risky and, when comparing its historical volatility, Centrum Finansowe Banku is 3.45 times less risky than Vee SA. The stock trades about -0.18 of its potential returns per unit of risk. The Vee SA is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,030 in Vee SA on October 26, 2024 and sell it today you would earn a total of 88.00 from holding Vee SA or generate 8.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Centrum Finansowe Banku vs. Vee SA
Performance |
Timeline |
Centrum Finansowe Banku |
Vee SA |
Centrum Finansowe and Vee SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Centrum Finansowe and Vee SA
The main advantage of trading using opposite Centrum Finansowe and Vee SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrum Finansowe position performs unexpectedly, Vee 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 Vee SA will offset losses from the drop in Vee SA's long position.Centrum Finansowe vs. CI Games SA | Centrum Finansowe vs. MCI Management SA | Centrum Finansowe vs. Medicofarma Biotech SA | Centrum Finansowe vs. SOFTWARE MANSION SPOLKA |
Vee SA vs. UniCredit SpA | Vee SA vs. Medicalg | Vee SA vs. Creativeforge Games SA | Vee SA vs. Centrum Finansowe Banku |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |