Correlation Between Hrvatska Postanska and Jadroplov
Can any of the company-specific risk be diversified away by investing in both Hrvatska Postanska and Jadroplov 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 Jadroplov 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 Jadroplov dd, you can compare the effects of market volatilities on Hrvatska Postanska and Jadroplov 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 Jadroplov. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hrvatska Postanska and Jadroplov.
Diversification Opportunities for Hrvatska Postanska and Jadroplov
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hrvatska and Jadroplov is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hrvatska Postanska Banka and Jadroplov dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jadroplov 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 Jadroplov. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jadroplov dd has no effect on the direction of Hrvatska Postanska i.e., Hrvatska Postanska and Jadroplov go up and down completely randomly.
Pair Corralation between Hrvatska Postanska and Jadroplov
Assuming the 90 days trading horizon Hrvatska Postanska Banka is expected to generate 0.61 times more return on investment than Jadroplov. However, Hrvatska Postanska Banka is 1.65 times less risky than Jadroplov. It trades about 0.15 of its potential returns per unit of risk. Jadroplov dd is currently generating about 0.0 per unit of risk. If you would invest 10,545 in Hrvatska Postanska Banka on September 14, 2024 and sell it today you would earn a total of 23,855 from holding Hrvatska Postanska Banka or generate 226.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 83.37% |
| Values | Daily Returns |
Hrvatska Postanska Banka vs. Jadroplov dd
Performance |
| Timeline |
| Hrvatska Postanska Banka |
| Jadroplov dd |
Hrvatska Postanska and Jadroplov Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hrvatska Postanska and Jadroplov
The main advantage of trading using opposite Hrvatska Postanska and Jadroplov positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hrvatska Postanska position performs unexpectedly, Jadroplov 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 Jadroplov will offset losses from the drop in Jadroplov'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 |
| Jadroplov vs. AD Plastik dd | Jadroplov vs. Hrvatska Postanska Banka | Jadroplov vs. Dalekovod dd | Jadroplov vs. Podravka Prehrambena Industrija |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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