Correlation Between Hrvatska Postanska and Adris Grupa
Can any of the company-specific risk be diversified away by investing in both Hrvatska Postanska and Adris Grupa 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 Adris Grupa 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 Adris Grupa dd, you can compare the effects of market volatilities on Hrvatska Postanska and Adris Grupa 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 Adris Grupa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hrvatska Postanska and Adris Grupa.
Diversification Opportunities for Hrvatska Postanska and Adris Grupa
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hrvatska and Adris is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Hrvatska Postanska Banka and Adris Grupa dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adris Grupa 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 Adris Grupa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adris Grupa dd has no effect on the direction of Hrvatska Postanska i.e., Hrvatska Postanska and Adris Grupa go up and down completely randomly.
Pair Corralation between Hrvatska Postanska and Adris Grupa
Assuming the 90 days trading horizon Hrvatska Postanska Banka is expected to generate 1.08 times more return on investment than Adris Grupa. However, Hrvatska Postanska is 1.08 times more volatile than Adris Grupa dd. It trades about 0.49 of its potential returns per unit of risk. Adris Grupa dd is currently generating about 0.29 per unit of risk. If you would invest 29,000 in Hrvatska Postanska Banka on September 13, 2024 and sell it today you would earn a total of 5,400 from holding Hrvatska Postanska Banka or generate 18.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.9% |
| Values | Daily Returns |
Hrvatska Postanska Banka vs. Adris Grupa dd
Performance |
| Timeline |
| Hrvatska Postanska Banka |
| Adris Grupa dd |
Hrvatska Postanska and Adris Grupa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hrvatska Postanska and Adris Grupa
The main advantage of trading using opposite Hrvatska Postanska and Adris Grupa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hrvatska Postanska position performs unexpectedly, Adris Grupa 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 Adris Grupa will offset losses from the drop in Adris Grupa's long position.| Hrvatska Postanska vs. Zagrebacka Banka dd | Hrvatska Postanska vs. AD Plastik dd | Hrvatska Postanska vs. Dalekovod dd | Hrvatska Postanska vs. Podravka Prehrambena Industrija |
| Adris Grupa vs. Adris Grupa dd | Adris Grupa vs. AD Plastik dd | Adris Grupa vs. Hrvatska Postanska Banka | Adris Grupa vs. Dalekovod 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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