Correlation Between INA Industrija and Atlantic Grupa
Can any of the company-specific risk be diversified away by investing in both INA Industrija 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 INA Industrija and Atlantic Grupa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INA Industrija Nafte dd and Atlantic Grupa dd, you can compare the effects of market volatilities on INA Industrija 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 INA Industrija with a short position of Atlantic Grupa. Check out your portfolio center. Please also check ongoing floating volatility patterns of INA Industrija and Atlantic Grupa.
Diversification Opportunities for INA Industrija and Atlantic Grupa
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INA and Atlantic is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding INA Industrija Nafte 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 INA Industrija 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 INA Industrija Nafte 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 INA Industrija i.e., INA Industrija and Atlantic Grupa go up and down completely randomly.
Pair Corralation between INA Industrija and Atlantic Grupa
Assuming the 90 days trading horizon INA Industrija Nafte dd is expected to generate 2.01 times more return on investment than Atlantic Grupa. However, INA Industrija is 2.01 times more volatile than Atlantic Grupa dd. It trades about 0.01 of its potential returns per unit of risk. Atlantic Grupa dd is currently generating about -0.39 per unit of risk. If you would invest 45,600 in INA Industrija Nafte dd on October 7, 2024 and sell it today you would earn a total of 0.00 from holding INA Industrija Nafte dd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 71.43% |
| Values | Daily Returns |
INA Industrija Nafte dd vs. Atlantic Grupa dd
Performance |
| Timeline |
| INA Industrija Nafte |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Atlantic Grupa dd |
INA Industrija and Atlantic Grupa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INA Industrija and Atlantic Grupa
The main advantage of trading using opposite INA Industrija and Atlantic Grupa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INA Industrija 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.| INA Industrija vs. AD Plastik dd | INA Industrija vs. Hrvatska Postanska Banka | INA Industrija vs. Dalekovod dd | INA Industrija vs. Podravka Prehrambena Industrija |
| Atlantic Grupa vs. AD Plastik dd | Atlantic Grupa vs. Hrvatska Postanska Banka | Atlantic Grupa vs. Dalekovod dd | Atlantic Grupa 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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