Correlation Between Intersport Polska and CEZ As
Can any of the company-specific risk be diversified away by investing in both Intersport Polska and CEZ As 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 CEZ As 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 CEZ as, you can compare the effects of market volatilities on Intersport Polska and CEZ As 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 CEZ As. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intersport Polska and CEZ As.
Diversification Opportunities for Intersport Polska and CEZ As
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Intersport and CEZ is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Intersport Polska SA and CEZ as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEZ as 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 CEZ As. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEZ as has no effect on the direction of Intersport Polska i.e., Intersport Polska and CEZ As go up and down completely randomly.
Pair Corralation between Intersport Polska and CEZ As
Assuming the 90 days trading horizon Intersport Polska is expected to generate 2.57 times less return on investment than CEZ As. In addition to that, Intersport Polska is 2.69 times more volatile than CEZ as. It trades about 0.01 of its total potential returns per unit of risk. CEZ as is currently generating about 0.07 per unit of volatility. If you would invest 14,196 in CEZ as on September 3, 2024 and sell it today you would earn a total of 2,254 from holding CEZ as or generate 15.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intersport Polska SA vs. CEZ as
Performance |
| Timeline |
| Intersport Polska |
| CEZ as |
Intersport Polska and CEZ As Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intersport Polska and CEZ As
The main advantage of trading using opposite Intersport Polska and CEZ As positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intersport Polska position performs unexpectedly, CEZ As 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 CEZ As will offset losses from the drop in CEZ As' long position.| Intersport Polska vs. Asseco Business Solutions | Intersport Polska vs. Kogeneracja SA | Intersport Polska vs. Asseco South Eastern | Intersport Polska vs. Movie Games SA |
| CEZ As vs. ING Bank lski | CEZ As vs. Intersport Polska SA | CEZ As vs. Cloud Technologies SA | CEZ As vs. Marie Brizard Wine |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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