Correlation Between Dalekovod and Podravka Prehrambena
Can any of the company-specific risk be diversified away by investing in both Dalekovod and Podravka Prehrambena 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 Dalekovod and Podravka Prehrambena into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dalekovod dd and Podravka Prehrambena Industrija, you can compare the effects of market volatilities on Dalekovod and Podravka Prehrambena 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 Dalekovod with a short position of Podravka Prehrambena. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalekovod and Podravka Prehrambena.
Diversification Opportunities for Dalekovod and Podravka Prehrambena
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dalekovod and Podravka is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dalekovod dd and Podravka Prehrambena Industrij in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Podravka Prehrambena and Dalekovod 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 Dalekovod dd are associated (or correlated) with Podravka Prehrambena. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Podravka Prehrambena has no effect on the direction of Dalekovod i.e., Dalekovod and Podravka Prehrambena go up and down completely randomly.
Pair Corralation between Dalekovod and Podravka Prehrambena
Assuming the 90 days trading horizon Dalekovod is expected to generate 1.0 times less return on investment than Podravka Prehrambena. In addition to that, Dalekovod is 1.77 times more volatile than Podravka Prehrambena Industrija. It trades about 0.05 of its total potential returns per unit of risk. Podravka Prehrambena Industrija is currently generating about 0.09 per unit of volatility. If you would invest 8,436 in Podravka Prehrambena Industrija on September 13, 2024 and sell it today you would earn a total of 6,114 from holding Podravka Prehrambena Industrija or generate 72.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.75% |
| Values | Daily Returns |
Dalekovod dd vs. Podravka Prehrambena Industrij
Performance |
| Timeline |
| Dalekovod dd |
| Podravka Prehrambena |
Dalekovod and Podravka Prehrambena Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalekovod and Podravka Prehrambena
The main advantage of trading using opposite Dalekovod and Podravka Prehrambena positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalekovod position performs unexpectedly, Podravka Prehrambena 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 Podravka Prehrambena will offset losses from the drop in Podravka Prehrambena's long position.| Dalekovod vs. AD Plastik dd | Dalekovod vs. Hrvatska Postanska Banka | Dalekovod vs. Podravka Prehrambena Industrija | Dalekovod vs. Adris Grupa dd |
| Podravka Prehrambena vs. Dalekovod dd | Podravka Prehrambena vs. Institut IGH dd | Podravka Prehrambena vs. Jadroplov dd | Podravka Prehrambena vs. Zagrebacka Banka dd |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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