Correlation Between Intersport Polska and CD PROJEKT
Can any of the company-specific risk be diversified away by investing in both Intersport Polska and CD PROJEKT 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 CD PROJEKT 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 CD PROJEKT SA, you can compare the effects of market volatilities on Intersport Polska and CD PROJEKT 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 CD PROJEKT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intersport Polska and CD PROJEKT.
Diversification Opportunities for Intersport Polska and CD PROJEKT
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Intersport and CDR is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Intersport Polska SA and CD PROJEKT SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CD PROJEKT SA 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 CD PROJEKT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CD PROJEKT SA has no effect on the direction of Intersport Polska i.e., Intersport Polska and CD PROJEKT go up and down completely randomly.
Pair Corralation between Intersport Polska and CD PROJEKT
Assuming the 90 days trading horizon Intersport Polska SA is expected to generate 3.08 times more return on investment than CD PROJEKT. However, Intersport Polska is 3.08 times more volatile than CD PROJEKT SA. It trades about 0.14 of its potential returns per unit of risk. CD PROJEKT SA is currently generating about 0.1 per unit of risk. If you would invest 63.00 in Intersport Polska SA on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Intersport Polska SA or generate 15.87% 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. CD PROJEKT SA
Performance |
| Timeline |
| Intersport Polska |
| CD PROJEKT SA |
Intersport Polska and CD PROJEKT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intersport Polska and CD PROJEKT
The main advantage of trading using opposite Intersport Polska and CD PROJEKT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intersport Polska position performs unexpectedly, CD PROJEKT 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 CD PROJEKT will offset losses from the drop in CD PROJEKT's long position.| Intersport Polska vs. Asseco Business Solutions | Intersport Polska vs. Detalion Games SA | Intersport Polska vs. Asseco South Eastern | Intersport Polska vs. CFI Holding SA |
| CD PROJEKT vs. Investment Friends Capital | CD PROJEKT vs. Cloud Technologies SA | CD PROJEKT vs. Varsav Game Studios | CD PROJEKT vs. True Games Syndicate |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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