Correlation Between Institut IGH and Atlantic Grupa
Can any of the company-specific risk be diversified away by investing in both Institut IGH and Atlantic 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 Institut IGH and Atlantic Grupa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Institut IGH dd and Atlantic Grupa dd, you can compare the effects of market volatilities on Institut IGH and Atlantic 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 Institut IGH with a short position of Atlantic Grupa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Institut IGH and Atlantic Grupa.
Diversification Opportunities for Institut IGH and Atlantic Grupa
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Institut and Atlantic is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Institut IGH dd and Atlantic Grupa dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Grupa dd and Institut IGH 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 Institut IGH dd are associated (or correlated) with Atlantic Grupa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Grupa dd has no effect on the direction of Institut IGH i.e., Institut IGH and Atlantic Grupa go up and down completely randomly.
Pair Corralation between Institut IGH and Atlantic Grupa
Assuming the 90 days trading horizon Institut IGH dd is expected to under-perform the Atlantic Grupa. In addition to that, Institut IGH is 7.08 times more volatile than Atlantic Grupa dd. It trades about -0.1 of its total potential returns per unit of risk. Atlantic Grupa dd is currently generating about -0.11 per unit of volatility. If you would invest 5,300 in Atlantic Grupa dd on September 13, 2024 and sell it today you would lose (200.00) from holding Atlantic Grupa dd or give up 3.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 60.0% |
| Values | Daily Returns |
Institut IGH dd vs. Atlantic Grupa dd
Performance |
| Timeline |
| Institut IGH dd |
| Atlantic Grupa dd |
Institut IGH and Atlantic Grupa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Institut IGH and Atlantic Grupa
The main advantage of trading using opposite Institut IGH and Atlantic Grupa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Institut IGH position performs unexpectedly, Atlantic 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 Atlantic Grupa will offset losses from the drop in Atlantic Grupa's long position.| Institut IGH vs. AD Plastik dd | Institut IGH vs. Hrvatska Postanska Banka | Institut IGH vs. Dalekovod dd | Institut IGH vs. Podravka Prehrambena Industrija |
| Atlantic Grupa vs. Dalekovod dd | Atlantic Grupa vs. Institut IGH dd | Atlantic Grupa vs. Jadroplov dd | Atlantic Grupa 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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