Correlation Between Intersport Polska and Altustfi
Can any of the company-specific risk be diversified away by investing in both Intersport Polska and Altustfi 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 Intersport Polska and Altustfi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intersport Polska SA and Altustfi, you can compare the effects of market volatilities on Intersport Polska and Altustfi 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 Intersport Polska with a short position of Altustfi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intersport Polska and Altustfi.
Diversification Opportunities for Intersport Polska and Altustfi
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intersport and Altustfi is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Intersport Polska SA and Altustfi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altustfi and Intersport Polska 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 Intersport Polska SA are associated (or correlated) with Altustfi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altustfi has no effect on the direction of Intersport Polska i.e., Intersport Polska and Altustfi go up and down completely randomly.
Pair Corralation between Intersport Polska and Altustfi
Assuming the 90 days trading horizon Intersport Polska SA is expected to generate 1.89 times more return on investment than Altustfi. However, Intersport Polska is 1.89 times more volatile than Altustfi. It trades about 0.13 of its potential returns per unit of risk. Altustfi is currently generating about 0.0 per unit of risk. If you would invest 63.00 in Intersport Polska SA on September 4, 2024 and sell it today you would earn a total of 9.00 from holding Intersport Polska SA or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Intersport Polska SA vs. Altustfi
Performance |
| Timeline |
| Intersport Polska |
| Altustfi |
Intersport Polska and Altustfi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intersport Polska and Altustfi
The main advantage of trading using opposite Intersport Polska and Altustfi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intersport Polska position performs unexpectedly, Altustfi 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 Altustfi will offset losses from the drop in Altustfi's long position.| Intersport Polska vs. PZ Cormay SA | Intersport Polska vs. SOFTWARE MANSION SPOLKA | Intersport Polska vs. Quantum Software SA | Intersport Polska vs. TEN SQUARE GAMES |
| Altustfi vs. ING Bank lski | Altustfi vs. Intersport Polska SA | Altustfi vs. Centrum Finansowe Banku | Altustfi vs. Mlk Foods Public |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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