Correlation Between Creotech Instruments and Bank Polska
Can any of the company-specific risk be diversified away by investing in both Creotech Instruments and Bank Polska 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 Creotech Instruments and Bank Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creotech Instruments SA and Bank Polska Kasa, you can compare the effects of market volatilities on Creotech Instruments and Bank Polska 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 Creotech Instruments with a short position of Bank Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creotech Instruments and Bank Polska.
Diversification Opportunities for Creotech Instruments and Bank Polska
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Creotech and Bank is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Creotech Instruments SA and Bank Polska Kasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Polska Kasa and Creotech Instruments 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 Creotech Instruments SA are associated (or correlated) with Bank Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Polska Kasa has no effect on the direction of Creotech Instruments i.e., Creotech Instruments and Bank Polska go up and down completely randomly.
Pair Corralation between Creotech Instruments and Bank Polska
Assuming the 90 days trading horizon Creotech Instruments is expected to generate 2.8 times less return on investment than Bank Polska. In addition to that, Creotech Instruments is 2.16 times more volatile than Bank Polska Kasa. It trades about 0.08 of its total potential returns per unit of risk. Bank Polska Kasa is currently generating about 0.49 per unit of volatility. If you would invest 13,910 in Bank Polska Kasa on November 3, 2024 and sell it today you would earn a total of 2,125 from holding Bank Polska Kasa or generate 15.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creotech Instruments SA vs. Bank Polska Kasa
Performance |
| Timeline |
| Creotech Instruments |
| Bank Polska Kasa |
Creotech Instruments and Bank Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creotech Instruments and Bank Polska
The main advantage of trading using opposite Creotech Instruments and Bank Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creotech Instruments position performs unexpectedly, Bank Polska 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 Bank Polska will offset losses from the drop in Bank Polska's long position.| Creotech Instruments vs. Asseco Business Solutions | Creotech Instruments vs. Detalion Games SA | Creotech Instruments vs. Movie Games SA | Creotech Instruments vs. Altustfi |
| Bank Polska vs. LSI Software SA | Bank Polska vs. Quantum Software SA | Bank Polska vs. UniCredit SpA | Bank Polska vs. M Food 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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