Correlation Between Institut IGH and Zagrebacka Banka
Can any of the company-specific risk be diversified away by investing in both Institut IGH and Zagrebacka Banka 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 Zagrebacka Banka 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 Zagrebacka Banka dd, you can compare the effects of market volatilities on Institut IGH and Zagrebacka Banka 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 Zagrebacka Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Institut IGH and Zagrebacka Banka.
Diversification Opportunities for Institut IGH and Zagrebacka Banka
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Institut and Zagrebacka is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Institut IGH dd and Zagrebacka Banka dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zagrebacka Banka 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 Zagrebacka Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zagrebacka Banka has no effect on the direction of Institut IGH i.e., Institut IGH and Zagrebacka Banka go up and down completely randomly.
Pair Corralation between Institut IGH and Zagrebacka Banka
Assuming the 90 days trading horizon Institut IGH dd is expected to generate 3.58 times more return on investment than Zagrebacka Banka. However, Institut IGH is 3.58 times more volatile than Zagrebacka Banka dd. It trades about 0.05 of its potential returns per unit of risk. Zagrebacka Banka dd is currently generating about 0.15 per unit of risk. If you would invest 1,161 in Institut IGH dd on September 13, 2024 and sell it today you would earn a total of 539.00 from holding Institut IGH dd or generate 46.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 58.64% |
| Values | Daily Returns |
Institut IGH dd vs. Zagrebacka Banka dd
Performance |
| Timeline |
| Institut IGH dd |
| Zagrebacka Banka |
Institut IGH and Zagrebacka Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Institut IGH and Zagrebacka Banka
The main advantage of trading using opposite Institut IGH and Zagrebacka Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Institut IGH position performs unexpectedly, Zagrebacka Banka 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 Zagrebacka Banka will offset losses from the drop in Zagrebacka Banka'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 |
| Zagrebacka Banka vs. Dalekovod dd | Zagrebacka Banka vs. Institut IGH dd | Zagrebacka Banka 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |