Correlation Between Coloseum Holding and Philip Morris
Can any of the company-specific risk be diversified away by investing in both Coloseum Holding and Philip Morris 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 Philip Morris 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 Philip Morris CR, you can compare the effects of market volatilities on Coloseum Holding and Philip Morris 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 Philip Morris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloseum Holding and Philip Morris.
Diversification Opportunities for Coloseum Holding and Philip Morris
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coloseum and Philip is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Coloseum Holding as and Philip Morris CR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philip Morris CR 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 Philip Morris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philip Morris CR has no effect on the direction of Coloseum Holding i.e., Coloseum Holding and Philip Morris go up and down completely randomly.
Pair Corralation between Coloseum Holding and Philip Morris
Assuming the 90 days trading horizon Coloseum Holding as is expected to under-perform the Philip Morris. In addition to that, Coloseum Holding is 7.5 times more volatile than Philip Morris CR. It trades about -0.2 of its total potential returns per unit of risk. Philip Morris CR is currently generating about 0.07 per unit of volatility. If you would invest 1,606,000 in Philip Morris CR on August 29, 2024 and sell it today you would earn a total of 14,000 from holding Philip Morris CR or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coloseum Holding as vs. Philip Morris CR
Performance |
| Timeline |
| Coloseum Holding |
| Philip Morris CR |
Coloseum Holding and Philip Morris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloseum Holding and Philip Morris
The main advantage of trading using opposite Coloseum Holding and Philip Morris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloseum Holding position performs unexpectedly, Philip Morris 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 Philip Morris will offset losses from the drop in Philip Morris' long position.| Coloseum Holding vs. Volkswagen AG | Coloseum Holding vs. GEVORKYAN as | Coloseum Holding vs. Philip Morris CR | Coloseum Holding vs. Prabos Plus as |
| Philip Morris vs. Cez AS | Philip Morris vs. HARDWARIO as | Philip Morris vs. Prabos Plus as | Philip Morris vs. Kofola CeskoSlovensko 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |