Correlation Between Immobile and Polski Koncern
Can any of the company-specific risk be diversified away by investing in both Immobile 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 Immobile and Polski Koncern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immobile and Polski Koncern Naftowy, you can compare the effects of market volatilities on Immobile 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 Immobile with a short position of Polski Koncern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immobile and Polski Koncern.
Diversification Opportunities for Immobile and Polski Koncern
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Immobile and Polski is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Immobile 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 Immobile 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 Immobile 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 Immobile i.e., Immobile and Polski Koncern go up and down completely randomly.
Pair Corralation between Immobile and Polski Koncern
Assuming the 90 days trading horizon Immobile is expected to under-perform the Polski Koncern. In addition to that, Immobile is 1.79 times more volatile than Polski Koncern Naftowy. It trades about -0.11 of its total potential returns per unit of risk. Polski Koncern Naftowy is currently generating about -0.06 per unit of volatility. If you would invest 5,834 in Polski Koncern Naftowy on September 2, 2024 and sell it today you would lose (732.00) from holding Polski Koncern Naftowy or give up 12.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immobile vs. Polski Koncern Naftowy
Performance |
| Timeline |
| Immobile |
| Polski Koncern Naftowy |
Immobile and Polski Koncern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immobile and Polski Koncern
The main advantage of trading using opposite Immobile and Polski Koncern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immobile 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.| Immobile vs. Carlson Investments SA | Immobile vs. Alior Bank SA | Immobile vs. Play2Chill SA | Immobile vs. Skyline Investment SA |
| Polski Koncern vs. Echo Investment SA | Polski Koncern vs. Esotiq Henderson SA | Polski Koncern vs. Asseco South Eastern | Polski Koncern vs. Vercom 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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