Correlation Between Gamedust and Polski Koncern
Can any of the company-specific risk be diversified away by investing in both Gamedust 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 Gamedust and Polski Koncern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamedust SA and Polski Koncern Naftowy, you can compare the effects of market volatilities on Gamedust 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 Gamedust with a short position of Polski Koncern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamedust and Polski Koncern.
Diversification Opportunities for Gamedust and Polski Koncern
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gamedust and Polski is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gamedust SA 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 Gamedust 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 Gamedust SA 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 Gamedust i.e., Gamedust and Polski Koncern go up and down completely randomly.
Pair Corralation between Gamedust and Polski Koncern
Assuming the 90 days trading horizon Gamedust SA is expected to under-perform the Polski Koncern. In addition to that, Gamedust is 1.44 times more volatile than Polski Koncern Naftowy. It trades about -0.33 of its total potential returns per unit of risk. Polski Koncern Naftowy is currently generating about 0.57 per unit of volatility. If you would invest 4,690 in Polski Koncern Naftowy on October 25, 2024 and sell it today you would earn a total of 590.00 from holding Polski Koncern Naftowy or generate 12.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamedust SA vs. Polski Koncern Naftowy
Performance |
| Timeline |
| Gamedust SA |
| Polski Koncern Naftowy |
Gamedust and Polski Koncern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamedust and Polski Koncern
The main advantage of trading using opposite Gamedust and Polski Koncern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamedust 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.| Gamedust vs. Quantum Software SA | Gamedust vs. SOFTWARE MANSION SPOLKA | Gamedust vs. Varsav Game Studios | Gamedust vs. All In Games |
| Polski Koncern vs. Globe Trade Centre | Polski Koncern vs. Gaming Factory SA | Polski Koncern vs. Mlk Foods Public | Polski Koncern vs. Gamedust 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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