Correlation Between Gobarto SA and Polski Koncern
Can any of the company-specific risk be diversified away by investing in both Gobarto SA 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 Gobarto SA and Polski Koncern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gobarto SA and Polski Koncern Naftowy, you can compare the effects of market volatilities on Gobarto SA 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 Gobarto SA with a short position of Polski Koncern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gobarto SA and Polski Koncern.
Diversification Opportunities for Gobarto SA and Polski Koncern
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gobarto and Polski is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Gobarto 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 Gobarto SA 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 Gobarto 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 Gobarto SA i.e., Gobarto SA and Polski Koncern go up and down completely randomly.
Pair Corralation between Gobarto SA and Polski Koncern
Assuming the 90 days trading horizon Gobarto SA is expected to generate 1.62 times more return on investment than Polski Koncern. However, Gobarto SA is 1.62 times more volatile than Polski Koncern Naftowy. It trades about 0.03 of its potential returns per unit of risk. Polski Koncern Naftowy is currently generating about -0.03 per unit of risk. If you would invest 3,050 in Gobarto SA on September 4, 2024 and sell it today you would earn a total of 40.00 from holding Gobarto SA or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gobarto SA vs. Polski Koncern Naftowy
Performance |
| Timeline |
| Gobarto SA |
| Polski Koncern Naftowy |
Gobarto SA and Polski Koncern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gobarto SA and Polski Koncern
The main advantage of trading using opposite Gobarto SA and Polski Koncern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gobarto SA 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.| Gobarto SA vs. Banco Santander SA | Gobarto SA vs. UniCredit SpA | Gobarto SA vs. CEZ as | Gobarto SA vs. Polski Koncern Naftowy |
| Polski Koncern vs. Asseco South Eastern | Polski Koncern vs. Vercom SA | Polski Koncern vs. CFI Holding SA | Polski Koncern vs. Gobarto 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |