Correlation Between Globe Trade and Kogeneracja
Can any of the company-specific risk be diversified away by investing in both Globe Trade and Kogeneracja 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 Kogeneracja 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 Kogeneracja SA, you can compare the effects of market volatilities on Globe Trade and Kogeneracja 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 Kogeneracja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and Kogeneracja.
Diversification Opportunities for Globe Trade and Kogeneracja
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Globe and Kogeneracja is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre and Kogeneracja SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kogeneracja SA 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 Kogeneracja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kogeneracja SA has no effect on the direction of Globe Trade i.e., Globe Trade and Kogeneracja go up and down completely randomly.
Pair Corralation between Globe Trade and Kogeneracja
Assuming the 90 days trading horizon Globe Trade Centre is expected to under-perform the Kogeneracja. But the stock apears to be less risky and, when comparing its historical volatility, Globe Trade Centre is 1.04 times less risky than Kogeneracja. The stock trades about -0.03 of its potential returns per unit of risk. The Kogeneracja SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,590 in Kogeneracja SA on September 12, 2024 and sell it today you would earn a total of 1,740 from holding Kogeneracja SA or generate 48.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globe Trade Centre vs. Kogeneracja SA
Performance |
| Timeline |
| Globe Trade Centre |
| Kogeneracja SA |
Globe Trade and Kogeneracja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Trade and Kogeneracja
The main advantage of trading using opposite Globe Trade and Kogeneracja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade position performs unexpectedly, Kogeneracja 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 Kogeneracja will offset losses from the drop in Kogeneracja's long position.| Globe Trade vs. MW Trade SA | Globe Trade vs. Kool2play SA | Globe Trade vs. Echo Investment SA | Globe Trade vs. Movie Games SA |
| Kogeneracja vs. CI Games SA | Kogeneracja vs. Globe Trade Centre | Kogeneracja vs. Medicalg | Kogeneracja vs. Logintrade 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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