Correlation Between Globe Trade and Izolacja Jarocin
Can any of the company-specific risk be diversified away by investing in both Globe Trade and Izolacja Jarocin 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 Globe Trade and Izolacja Jarocin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Trade Centre and Izolacja Jarocin SA, you can compare the effects of market volatilities on Globe Trade and Izolacja Jarocin 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 Globe Trade with a short position of Izolacja Jarocin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and Izolacja Jarocin.
Diversification Opportunities for Globe Trade and Izolacja Jarocin
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Globe and Izolacja is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre and Izolacja Jarocin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Izolacja Jarocin and Globe Trade 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 Globe Trade Centre are associated (or correlated) with Izolacja Jarocin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Izolacja Jarocin has no effect on the direction of Globe Trade i.e., Globe Trade and Izolacja Jarocin go up and down completely randomly.
Pair Corralation between Globe Trade and Izolacja Jarocin
Assuming the 90 days trading horizon Globe Trade Centre is expected to generate 0.76 times more return on investment than Izolacja Jarocin. However, Globe Trade Centre is 1.31 times less risky than Izolacja Jarocin. It trades about 0.12 of its potential returns per unit of risk. Izolacja Jarocin SA is currently generating about 0.01 per unit of risk. If you would invest 411.00 in Globe Trade Centre on August 30, 2024 and sell it today you would earn a total of 20.00 from holding Globe Trade Centre or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globe Trade Centre vs. Izolacja Jarocin SA
Performance |
| Timeline |
| Globe Trade Centre |
| Izolacja Jarocin |
Globe Trade and Izolacja Jarocin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Trade and Izolacja Jarocin
The main advantage of trading using opposite Globe Trade and Izolacja Jarocin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade position performs unexpectedly, Izolacja Jarocin 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 Izolacja Jarocin will offset losses from the drop in Izolacja Jarocin's long position.| Globe Trade vs. Asseco Business Solutions | Globe Trade vs. Detalion Games SA | Globe Trade vs. CFI Holding SA | Globe Trade vs. HM Inwest SA |
| Izolacja Jarocin vs. LSI Software SA | Izolacja Jarocin vs. Skyline Investment SA | Izolacja Jarocin vs. SOFTWARE MANSION SPOLKA | Izolacja Jarocin vs. Tower Investments 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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