Correlation Between HM Inwest and Jastrzebska Spotka
Can any of the company-specific risk be diversified away by investing in both HM Inwest and Jastrzebska Spotka 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 HM Inwest and Jastrzebska Spotka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HM Inwest SA and Jastrzebska Spotka Weglowa, you can compare the effects of market volatilities on HM Inwest and Jastrzebska Spotka 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 HM Inwest with a short position of Jastrzebska Spotka. Check out your portfolio center. Please also check ongoing floating volatility patterns of HM Inwest and Jastrzebska Spotka.
Diversification Opportunities for HM Inwest and Jastrzebska Spotka
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HMI and Jastrzebska is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding HM Inwest SA and Jastrzebska Spotka Weglowa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jastrzebska Spotka and HM Inwest 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 HM Inwest SA are associated (or correlated) with Jastrzebska Spotka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jastrzebska Spotka has no effect on the direction of HM Inwest i.e., HM Inwest and Jastrzebska Spotka go up and down completely randomly.
Pair Corralation between HM Inwest and Jastrzebska Spotka
Assuming the 90 days trading horizon HM Inwest SA is expected to generate 0.56 times more return on investment than Jastrzebska Spotka. However, HM Inwest SA is 1.77 times less risky than Jastrzebska Spotka. It trades about -0.27 of its potential returns per unit of risk. Jastrzebska Spotka Weglowa is currently generating about -0.23 per unit of risk. If you would invest 4,790 in HM Inwest SA on September 14, 2024 and sell it today you would lose (290.00) from holding HM Inwest SA or give up 6.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HM Inwest SA vs. Jastrzebska Spotka Weglowa
Performance |
| Timeline |
| HM Inwest SA |
| Jastrzebska Spotka |
HM Inwest and Jastrzebska Spotka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HM Inwest and Jastrzebska Spotka
The main advantage of trading using opposite HM Inwest and Jastrzebska Spotka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HM Inwest position performs unexpectedly, Jastrzebska Spotka 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 Jastrzebska Spotka will offset losses from the drop in Jastrzebska Spotka's long position.| HM Inwest vs. Banco Santander SA | HM Inwest vs. UniCredit SpA | HM Inwest vs. CEZ as | HM Inwest vs. Polski Koncern Naftowy |
| Jastrzebska Spotka vs. GreenX Metals | Jastrzebska Spotka vs. Asseco Business Solutions | Jastrzebska Spotka vs. Asseco South Eastern | Jastrzebska Spotka 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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