Correlation Between Coloseum Holding and FIXEDzone
Can any of the company-specific risk be diversified away by investing in both Coloseum Holding and FIXEDzone 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 Coloseum Holding and FIXEDzone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coloseum Holding as and FIXEDzone as, you can compare the effects of market volatilities on Coloseum Holding and FIXEDzone 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 Coloseum Holding with a short position of FIXEDzone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloseum Holding and FIXEDzone.
Diversification Opportunities for Coloseum Holding and FIXEDzone
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coloseum and FIXEDzone is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Coloseum Holding as and FIXEDzone as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIXEDzone as and Coloseum Holding 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 Coloseum Holding as are associated (or correlated) with FIXEDzone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIXEDzone as has no effect on the direction of Coloseum Holding i.e., Coloseum Holding and FIXEDzone go up and down completely randomly.
Pair Corralation between Coloseum Holding and FIXEDzone
Assuming the 90 days trading horizon Coloseum Holding as is expected to under-perform the FIXEDzone. In addition to that, Coloseum Holding is 2.86 times more volatile than FIXEDzone as. It trades about -0.2 of its total potential returns per unit of risk. FIXEDzone as is currently generating about -0.3 per unit of volatility. If you would invest 15,500 in FIXEDzone as on August 25, 2024 and sell it today you would lose (1,500) from holding FIXEDzone as or give up 9.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coloseum Holding as vs. FIXEDzone as
Performance |
| Timeline |
| Coloseum Holding |
| FIXEDzone as |
Coloseum Holding and FIXEDzone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloseum Holding and FIXEDzone
The main advantage of trading using opposite Coloseum Holding and FIXEDzone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloseum Holding position performs unexpectedly, FIXEDzone 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 FIXEDzone will offset losses from the drop in FIXEDzone's long position.| Coloseum Holding vs. Volkswagen AG | Coloseum Holding vs. GEVORKYAN as | Coloseum Holding vs. Philip Morris CR | Coloseum Holding vs. Prabos Plus as |
| FIXEDzone vs. Cez AS | FIXEDzone vs. MT 1997 AS | FIXEDzone vs. Kofola CeskoSlovensko as | FIXEDzone vs. HARDWARIO as |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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