Correlation Between Intersport Polska and Salesforce
Can any of the company-specific risk be diversified away by investing in both Intersport Polska and Salesforce 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 Salesforce 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 PZ Cormay SA, you can compare the effects of market volatilities on Intersport Polska and Salesforce 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 Salesforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intersport Polska and Salesforce.
Diversification Opportunities for Intersport Polska and Salesforce
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intersport and Salesforce is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Intersport Polska SA and PZ Cormay SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PZ Cormay 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 Salesforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PZ Cormay SA has no effect on the direction of Intersport Polska i.e., Intersport Polska and Salesforce go up and down completely randomly.
Pair Corralation between Intersport Polska and Salesforce
Assuming the 90 days trading horizon Intersport Polska SA is expected to generate 2.03 times more return on investment than Salesforce. However, Intersport Polska is 2.03 times more volatile than PZ Cormay SA. It trades about -0.02 of its potential returns per unit of risk. PZ Cormay SA is currently generating about -0.11 per unit of risk. If you would invest 88.00 in Intersport Polska SA on September 1, 2024 and sell it today you would lose (15.00) from holding Intersport Polska SA or give up 17.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intersport Polska SA vs. PZ Cormay SA
Performance |
| Timeline |
| Intersport Polska |
| PZ Cormay SA |
Intersport Polska and Salesforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intersport Polska and Salesforce
The main advantage of trading using opposite Intersport Polska and Salesforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intersport Polska position performs unexpectedly, Salesforce 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 Salesforce will offset losses from the drop in Salesforce'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 |
| Salesforce vs. Banco Santander SA | Salesforce vs. UniCredit SpA | Salesforce vs. CEZ as | Salesforce vs. Polski Koncern Naftowy |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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