Correlation Between Dalekovod and Zagrebacka Banka
Can any of the company-specific risk be diversified away by investing in both Dalekovod and Zagrebacka 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 Dalekovod and Zagrebacka Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dalekovod dd and Zagrebacka Banka dd, you can compare the effects of market volatilities on Dalekovod and Zagrebacka 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 Dalekovod with a short position of Zagrebacka Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalekovod and Zagrebacka Banka.
Diversification Opportunities for Dalekovod and Zagrebacka Banka
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dalekovod and Zagrebacka is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dalekovod dd and Zagrebacka Banka dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zagrebacka Banka 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 Zagrebacka Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zagrebacka Banka has no effect on the direction of Dalekovod i.e., Dalekovod and Zagrebacka Banka go up and down completely randomly.
Pair Corralation between Dalekovod and Zagrebacka Banka
Assuming the 90 days trading horizon Dalekovod dd is expected to generate 1.73 times more return on investment than Zagrebacka Banka. However, Dalekovod is 1.73 times more volatile than Zagrebacka Banka dd. It trades about 0.49 of its potential returns per unit of risk. Zagrebacka Banka dd is currently generating about 0.28 per unit of risk. If you would invest 344.00 in Dalekovod dd on October 20, 2024 and sell it today you would earn a total of 90.00 from holding Dalekovod dd or generate 26.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Dalekovod dd vs. Zagrebacka Banka dd
Performance |
| Timeline |
| Dalekovod dd |
| Zagrebacka Banka |
Dalekovod and Zagrebacka Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalekovod and Zagrebacka Banka
The main advantage of trading using opposite Dalekovod and Zagrebacka Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalekovod position performs unexpectedly, Zagrebacka 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 Zagrebacka Banka will offset losses from the drop in Zagrebacka Banka's long position.| Dalekovod vs. Institut IGH dd | Dalekovod vs. Jadroplov dd | Dalekovod vs. Zagrebacka Banka dd | Dalekovod vs. Podravka Prehrambena Industrija |
| Zagrebacka Banka vs. Hrvatska Postanska Banka | Zagrebacka Banka vs. AD Plastik dd | Zagrebacka Banka vs. Dalekovod dd | Zagrebacka Banka vs. Podravka Prehrambena Industrija |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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