Correlation Between Intersport Polska and Creotech Instruments
Can any of the company-specific risk be diversified away by investing in both Intersport Polska and Creotech Instruments 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 Creotech Instruments 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 Creotech Instruments SA, you can compare the effects of market volatilities on Intersport Polska and Creotech Instruments 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 Creotech Instruments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intersport Polska and Creotech Instruments.
Diversification Opportunities for Intersport Polska and Creotech Instruments
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Intersport and Creotech is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Intersport Polska SA and Creotech Instruments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creotech Instruments 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 Creotech Instruments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creotech Instruments has no effect on the direction of Intersport Polska i.e., Intersport Polska and Creotech Instruments go up and down completely randomly.
Pair Corralation between Intersport Polska and Creotech Instruments
Assuming the 90 days trading horizon Intersport Polska is expected to generate 1.57 times less return on investment than Creotech Instruments. In addition to that, Intersport Polska is 1.69 times more volatile than Creotech Instruments SA. It trades about 0.01 of its total potential returns per unit of risk. Creotech Instruments SA is currently generating about 0.04 per unit of volatility. If you would invest 11,200 in Creotech Instruments SA on August 30, 2024 and sell it today you would earn a total of 3,800 from holding Creotech Instruments SA or generate 33.93% 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. Creotech Instruments SA
Performance |
| Timeline |
| Intersport Polska |
| Creotech Instruments |
Intersport Polska and Creotech Instruments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intersport Polska and Creotech Instruments
The main advantage of trading using opposite Intersport Polska and Creotech Instruments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intersport Polska position performs unexpectedly, Creotech Instruments 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 Creotech Instruments will offset losses from the drop in Creotech Instruments' long position.| Intersport Polska vs. Asseco Business Solutions | Intersport Polska vs. Detalion Games SA | Intersport Polska vs. CFI Holding SA | Intersport Polska vs. HM Inwest SA |
| Creotech Instruments vs. Asseco Business Solutions | Creotech Instruments vs. Detalion Games SA | Creotech Instruments vs. CFI Holding SA | Creotech Instruments vs. HM Inwest SA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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