Correlation Between Globe Trade and Powszechny Zaklad
Can any of the company-specific risk be diversified away by investing in both Globe Trade and Powszechny Zaklad 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 Powszechny Zaklad 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 Powszechny Zaklad Ubezpieczen, you can compare the effects of market volatilities on Globe Trade and Powszechny Zaklad 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 Powszechny Zaklad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and Powszechny Zaklad.
Diversification Opportunities for Globe Trade and Powszechny Zaklad
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Globe and Powszechny is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre and Powszechny Zaklad Ubezpieczen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powszechny Zaklad 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 Powszechny Zaklad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powszechny Zaklad has no effect on the direction of Globe Trade i.e., Globe Trade and Powszechny Zaklad go up and down completely randomly.
Pair Corralation between Globe Trade and Powszechny Zaklad
Assuming the 90 days trading horizon Globe Trade Centre is expected to under-perform the Powszechny Zaklad. In addition to that, Globe Trade is 1.23 times more volatile than Powszechny Zaklad Ubezpieczen. It trades about -0.01 of its total potential returns per unit of risk. Powszechny Zaklad Ubezpieczen is currently generating about 0.1 per unit of volatility. If you would invest 4,159 in Powszechny Zaklad Ubezpieczen on September 12, 2024 and sell it today you would earn a total of 485.00 from holding Powszechny Zaklad Ubezpieczen or generate 11.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Globe Trade Centre vs. Powszechny Zaklad Ubezpieczen
Performance |
| Timeline |
| Globe Trade Centre |
| Powszechny Zaklad |
Globe Trade and Powszechny Zaklad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Trade and Powszechny Zaklad
The main advantage of trading using opposite Globe Trade and Powszechny Zaklad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade position performs unexpectedly, Powszechny Zaklad 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 Powszechny Zaklad will offset losses from the drop in Powszechny Zaklad's long position.| Globe Trade vs. Kool2play SA | Globe Trade vs. Medicofarma Biotech SA | Globe Trade vs. GreenX Metals | Globe Trade vs. Creotech Instruments SA |
| Powszechny Zaklad vs. Asseco Business Solutions | Powszechny Zaklad vs. Detalion Games SA | Powszechny Zaklad vs. Asseco South Eastern | Powszechny Zaklad vs. HM Inwest 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |