Correlation Between Intersport Polska and Fabryki Mebli
Can any of the company-specific risk be diversified away by investing in both Intersport Polska and Fabryki Mebli 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 Fabryki Mebli 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 Fabryki Mebli Forte, you can compare the effects of market volatilities on Intersport Polska and Fabryki Mebli 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 Fabryki Mebli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intersport Polska and Fabryki Mebli.
Diversification Opportunities for Intersport Polska and Fabryki Mebli
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intersport and Fabryki is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Intersport Polska SA and Fabryki Mebli Forte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fabryki Mebli Forte 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 Fabryki Mebli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fabryki Mebli Forte has no effect on the direction of Intersport Polska i.e., Intersport Polska and Fabryki Mebli go up and down completely randomly.
Pair Corralation between Intersport Polska and Fabryki Mebli
Assuming the 90 days trading horizon Intersport Polska SA is expected to under-perform the Fabryki Mebli. In addition to that, Intersport Polska is 2.22 times more volatile than Fabryki Mebli Forte. It trades about -0.03 of its total potential returns per unit of risk. Fabryki Mebli Forte is currently generating about 0.05 per unit of volatility. If you would invest 2,290 in Fabryki Mebli Forte on September 12, 2024 and sell it today you would earn a total of 400.00 from holding Fabryki Mebli Forte or generate 17.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intersport Polska SA vs. Fabryki Mebli Forte
Performance |
| Timeline |
| Intersport Polska |
| Fabryki Mebli Forte |
Intersport Polska and Fabryki Mebli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intersport Polska and Fabryki Mebli
The main advantage of trading using opposite Intersport Polska and Fabryki Mebli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intersport Polska position performs unexpectedly, Fabryki Mebli 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 Fabryki Mebli will offset losses from the drop in Fabryki Mebli's long position.| Intersport Polska vs. Movie Games SA | Intersport Polska vs. MW Trade SA | Intersport Polska vs. Alior Bank SA | Intersport Polska vs. Bank Millennium SA |
| Fabryki Mebli vs. Detalion Games SA | Fabryki Mebli vs. Quantum Software SA | Fabryki Mebli vs. Intersport Polska SA | Fabryki Mebli vs. Ultimate Games 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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