Correlation Between Hrvatska Postanska and AD Plastik
Can any of the company-specific risk be diversified away by investing in both Hrvatska Postanska and AD Plastik 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 Hrvatska Postanska and AD Plastik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hrvatska Postanska Banka and AD Plastik dd, you can compare the effects of market volatilities on Hrvatska Postanska and AD Plastik 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 Hrvatska Postanska with a short position of AD Plastik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hrvatska Postanska and AD Plastik.
Diversification Opportunities for Hrvatska Postanska and AD Plastik
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hrvatska and ADPL is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hrvatska Postanska Banka and AD Plastik dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AD Plastik dd and Hrvatska Postanska 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 Hrvatska Postanska Banka are associated (or correlated) with AD Plastik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AD Plastik dd has no effect on the direction of Hrvatska Postanska i.e., Hrvatska Postanska and AD Plastik go up and down completely randomly.
Pair Corralation between Hrvatska Postanska and AD Plastik
Assuming the 90 days trading horizon Hrvatska Postanska is expected to generate 5.83 times less return on investment than AD Plastik. But when comparing it to its historical volatility, Hrvatska Postanska Banka is 3.74 times less risky than AD Plastik. It trades about 0.14 of its potential returns per unit of risk. AD Plastik dd is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 944.00 in AD Plastik dd on November 2, 2024 and sell it today you would earn a total of 151.00 from holding AD Plastik dd or generate 16.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hrvatska Postanska Banka vs. AD Plastik dd
Performance |
| Timeline |
| Hrvatska Postanska Banka |
| AD Plastik dd |
Hrvatska Postanska and AD Plastik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hrvatska Postanska and AD Plastik
The main advantage of trading using opposite Hrvatska Postanska and AD Plastik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hrvatska Postanska position performs unexpectedly, AD Plastik 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 AD Plastik will offset losses from the drop in AD Plastik's long position.| Hrvatska Postanska vs. Dalekovod dd | Hrvatska Postanska vs. Institut IGH dd | Hrvatska Postanska vs. INA Industrija Nafte dd | Hrvatska Postanska vs. Jadroplov dd |
| AD Plastik vs. Dalekovod dd | AD Plastik vs. Institut IGH dd | AD Plastik vs. INA Industrija Nafte dd | AD Plastik vs. Jadroplov dd |
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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