Correlation Between Computer and Polski Koncern
Can any of the company-specific risk be diversified away by investing in both Computer and Polski Koncern 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 Computer and Polski Koncern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer And Technologies and Polski Koncern Naftowy, you can compare the effects of market volatilities on Computer and Polski Koncern 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 Computer with a short position of Polski Koncern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer and Polski Koncern.
Diversification Opportunities for Computer and Polski Koncern
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Computer and Polski is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Computer And Technologies and Polski Koncern Naftowy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polski Koncern Naftowy and Computer 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 Computer And Technologies are associated (or correlated) with Polski Koncern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polski Koncern Naftowy has no effect on the direction of Computer i.e., Computer and Polski Koncern go up and down completely randomly.
Pair Corralation between Computer and Polski Koncern
Assuming the 90 days horizon Computer And Technologies is expected to generate 1.24 times more return on investment than Polski Koncern. However, Computer is 1.24 times more volatile than Polski Koncern Naftowy. It trades about 0.04 of its potential returns per unit of risk. Polski Koncern Naftowy is currently generating about 0.04 per unit of risk. If you would invest 15.00 in Computer And Technologies on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Computer And Technologies or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.48% |
| Values | Daily Returns |
Computer And Technologies vs. Polski Koncern Naftowy
Performance |
| Timeline |
| Computer And Technologies |
| Polski Koncern Naftowy |
Computer and Polski Koncern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer and Polski Koncern
The main advantage of trading using opposite Computer and Polski Koncern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer position performs unexpectedly, Polski Koncern 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 Polski Koncern will offset losses from the drop in Polski Koncern's long position.| Computer vs. FUJITSU LTD ADR | Computer vs. Superior Plus Corp | Computer vs. NMI Holdings | Computer vs. Origin Agritech |
| Polski Koncern vs. Superior Plus Corp | Polski Koncern vs. NMI Holdings | Polski Koncern vs. Origin Agritech | Polski Koncern vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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