Correlation Between Intersport Polska and Kino Polska
Can any of the company-specific risk be diversified away by investing in both Intersport Polska and Kino Polska 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 Kino Polska 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 Kino Polska TV, you can compare the effects of market volatilities on Intersport Polska and Kino Polska 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 Kino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intersport Polska and Kino Polska.
Diversification Opportunities for Intersport Polska and Kino Polska
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Intersport and Kino is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Intersport Polska SA and Kino Polska TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kino Polska TV 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 Kino Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kino Polska TV has no effect on the direction of Intersport Polska i.e., Intersport Polska and Kino Polska go up and down completely randomly.
Pair Corralation between Intersport Polska and Kino Polska
Assuming the 90 days trading horizon Intersport Polska is expected to generate 1.96 times less return on investment than Kino Polska. In addition to that, Intersport Polska is 2.47 times more volatile than Kino Polska TV. It trades about 0.01 of its total potential returns per unit of risk. Kino Polska TV is currently generating about 0.06 per unit of volatility. If you would invest 1,154 in Kino Polska TV on August 30, 2024 and sell it today you would earn a total of 821.00 from holding Kino Polska TV or generate 71.14% 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. Kino Polska TV
Performance |
| Timeline |
| Intersport Polska |
| Kino Polska TV |
Intersport Polska and Kino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intersport Polska and Kino Polska
The main advantage of trading using opposite Intersport Polska and Kino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intersport Polska position performs unexpectedly, Kino Polska 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 Kino Polska will offset losses from the drop in Kino Polska's 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 |
| Kino Polska vs. GreenX Metals | Kino Polska vs. Tower Investments SA | Kino Polska vs. Intersport Polska SA | Kino Polska vs. Mlk Foods Public |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |