Correlation Between Hrvatska Postanska and KRA Dd
Can any of the company-specific risk be diversified away by investing in both Hrvatska Postanska and KRA Dd 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 KRA Dd 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 KRA dd, you can compare the effects of market volatilities on Hrvatska Postanska and KRA Dd 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 KRA Dd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hrvatska Postanska and KRA Dd.
Diversification Opportunities for Hrvatska Postanska and KRA Dd
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hrvatska and KRA is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hrvatska Postanska Banka and KRA dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRA 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 KRA Dd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRA dd has no effect on the direction of Hrvatska Postanska i.e., Hrvatska Postanska and KRA Dd go up and down completely randomly.
Pair Corralation between Hrvatska Postanska and KRA Dd
Assuming the 90 days trading horizon Hrvatska Postanska is expected to generate 2.71 times less return on investment than KRA Dd. But when comparing it to its historical volatility, Hrvatska Postanska Banka is 2.97 times less risky than KRA Dd. It trades about 0.14 of its potential returns per unit of risk. KRA dd is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 11,000 in KRA dd on November 2, 2024 and sell it today you would earn a total of 300.00 from holding KRA dd or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 42.11% |
| Values | Daily Returns |
Hrvatska Postanska Banka vs. KRA dd
Performance |
| Timeline |
| Hrvatska Postanska Banka |
| KRA dd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hrvatska Postanska and KRA Dd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hrvatska Postanska and KRA Dd
The main advantage of trading using opposite Hrvatska Postanska and KRA Dd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hrvatska Postanska position performs unexpectedly, KRA Dd 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 KRA Dd will offset losses from the drop in KRA Dd'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 |
| KRA Dd vs. Dalekovod dd | KRA Dd vs. Institut IGH dd | KRA Dd vs. Jadroplov dd | KRA Dd vs. Zagrebacka Banka 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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