Correlation Between CIG Pannonia and Raba Jarmuipari
Can any of the company-specific risk be diversified away by investing in both CIG Pannonia and Raba Jarmuipari 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 CIG Pannonia and Raba Jarmuipari into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIG Pannonia Life and Raba Jarmuipari Holding, you can compare the effects of market volatilities on CIG Pannonia and Raba Jarmuipari 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 CIG Pannonia with a short position of Raba Jarmuipari. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIG Pannonia and Raba Jarmuipari.
Diversification Opportunities for CIG Pannonia and Raba Jarmuipari
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between CIG and Raba is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding CIG Pannonia Life and Raba Jarmuipari Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raba Jarmuipari Holding and CIG Pannonia 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 CIG Pannonia Life are associated (or correlated) with Raba Jarmuipari. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raba Jarmuipari Holding has no effect on the direction of CIG Pannonia i.e., CIG Pannonia and Raba Jarmuipari go up and down completely randomly.
Pair Corralation between CIG Pannonia and Raba Jarmuipari
Assuming the 90 days trading horizon CIG Pannonia Life is expected to generate 0.88 times more return on investment than Raba Jarmuipari. However, CIG Pannonia Life is 1.14 times less risky than Raba Jarmuipari. It trades about 0.21 of its potential returns per unit of risk. Raba Jarmuipari Holding is currently generating about 0.1 per unit of risk. If you would invest 34,600 in CIG Pannonia Life on August 31, 2024 and sell it today you would earn a total of 2,400 from holding CIG Pannonia Life or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
CIG Pannonia Life vs. Raba Jarmuipari Holding
Performance |
| Timeline |
| CIG Pannonia Life |
| Raba Jarmuipari Holding |
CIG Pannonia and Raba Jarmuipari Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIG Pannonia and Raba Jarmuipari
The main advantage of trading using opposite CIG Pannonia and Raba Jarmuipari positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIG Pannonia position performs unexpectedly, Raba Jarmuipari 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 Raba Jarmuipari will offset losses from the drop in Raba Jarmuipari's long position.| CIG Pannonia vs. Raba Jarmuipari Holding | CIG Pannonia vs. NordTelekom Telecommunications Service | CIG Pannonia vs. OPUS GLOBAL Nyrt | CIG Pannonia vs. Nutex Investments PLC |
| Raba Jarmuipari vs. NordTelekom Telecommunications Service | Raba Jarmuipari vs. CIG Pannonia Life | Raba Jarmuipari vs. Delta Technologies Nyrt | Raba Jarmuipari vs. Commerzbank AG |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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