Correlation Between DFS Furniture and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both DFS Furniture and Komercni Banka 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 DFS Furniture and Komercni Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DFS Furniture PLC and Komercni Banka, you can compare the effects of market volatilities on DFS Furniture and Komercni Banka 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 DFS Furniture with a short position of Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of DFS Furniture and Komercni Banka.
Diversification Opportunities for DFS Furniture and Komercni Banka
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DFS and Komercni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DFS Furniture PLC and Komercni Banka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka and DFS Furniture 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 DFS Furniture PLC are associated (or correlated) with Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka has no effect on the direction of DFS Furniture i.e., DFS Furniture and Komercni Banka go up and down completely randomly.
Pair Corralation between DFS Furniture and Komercni Banka
Assuming the 90 days trading horizon DFS Furniture is expected to generate 1.58 times less return on investment than Komercni Banka. But when comparing it to its historical volatility, DFS Furniture PLC is 1.28 times less risky than Komercni Banka. It trades about 0.01 of its potential returns per unit of risk. Komercni Banka is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 53,257 in Komercni Banka on August 28, 2024 and sell it today you would earn a total of 143.00 from holding Komercni Banka or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
DFS Furniture PLC vs. Komercni Banka
Performance |
| Timeline |
| DFS Furniture PLC |
| Komercni Banka |
DFS Furniture and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DFS Furniture and Komercni Banka
The main advantage of trading using opposite DFS Furniture and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DFS Furniture position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka's long position.| DFS Furniture vs. Rockfire Resources plc | DFS Furniture vs. Tlou Energy | DFS Furniture vs. Ikigai Ventures | DFS Furniture vs. Falcon Oil Gas |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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