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
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Creotech and Bank is 0.48. 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 SA is expected to generate 0.67 times more return on investment than Bank Polska. However, Creotech Instruments SA is 1.48 times less risky than Bank Polska. It trades about -0.05 of its potential returns per unit of risk. Bank Polska Kasa is currently generating about -0.05 per unit of risk. If you would invest 14,700 in Creotech Instruments SA on September 1, 2024 and sell it today you would lose (300.00) from holding Creotech Instruments SA or give up 2.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | 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. Asseco South Eastern | Creotech Instruments vs. CFI Holding SA |
| Bank Polska vs. New Tech Venture | Bank Polska vs. Skyline Investment SA | Bank Polska vs. Creotech Instruments SA | Bank Polska vs. Carlson Investments 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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