Correlation Between Intersport Polska and Carlson Investments
Can any of the company-specific risk be diversified away by investing in both Intersport Polska and Carlson Investments 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 Carlson Investments 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 Carlson Investments SA, you can compare the effects of market volatilities on Intersport Polska and Carlson Investments 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 Carlson Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intersport Polska and Carlson Investments.
Diversification Opportunities for Intersport Polska and Carlson Investments
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Intersport and Carlson is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Intersport Polska SA and Carlson Investments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlson Investments 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 Carlson Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlson Investments has no effect on the direction of Intersport Polska i.e., Intersport Polska and Carlson Investments go up and down completely randomly.
Pair Corralation between Intersport Polska and Carlson Investments
Assuming the 90 days trading horizon Intersport Polska SA is expected to generate 1.11 times more return on investment than Carlson Investments. However, Intersport Polska is 1.11 times more volatile than Carlson Investments SA. It trades about 0.11 of its potential returns per unit of risk. Carlson Investments SA is currently generating about 0.09 per unit of risk. If you would invest 63.00 in Intersport Polska SA on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Intersport Polska SA or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intersport Polska SA vs. Carlson Investments SA
Performance |
| Timeline |
| Intersport Polska |
| Carlson Investments |
Intersport Polska and Carlson Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intersport Polska and Carlson Investments
The main advantage of trading using opposite Intersport Polska and Carlson Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intersport Polska position performs unexpectedly, Carlson Investments 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 Carlson Investments will offset losses from the drop in Carlson Investments' long position.| Intersport Polska vs. Asseco Business Solutions | Intersport Polska vs. Detalion Games SA | Intersport Polska vs. Asseco South Eastern | Intersport Polska vs. Movie Games SA |
| Carlson Investments vs. Centrum Finansowe Banku | Carlson Investments vs. Asseco Business Solutions | Carlson Investments vs. Detalion Games SA | Carlson Investments vs. Asseco South Eastern |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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