Correlation Between Intersport Polska and Play2Chill
Can any of the company-specific risk be diversified away by investing in both Intersport Polska and Play2Chill 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 Play2Chill 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 Play2Chill SA, you can compare the effects of market volatilities on Intersport Polska and Play2Chill 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 Play2Chill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intersport Polska and Play2Chill.
Diversification Opportunities for Intersport Polska and Play2Chill
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intersport and Play2Chill is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Intersport Polska SA and Play2Chill SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Play2Chill 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 Play2Chill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Play2Chill SA has no effect on the direction of Intersport Polska i.e., Intersport Polska and Play2Chill go up and down completely randomly.
Pair Corralation between Intersport Polska and Play2Chill
Assuming the 90 days trading horizon Intersport Polska SA is expected to generate 1.65 times more return on investment than Play2Chill. However, Intersport Polska is 1.65 times more volatile than Play2Chill SA. It trades about 0.04 of its potential returns per unit of risk. Play2Chill SA is currently generating about 0.04 per unit of risk. If you would invest 63.00 in Intersport Polska SA on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Intersport Polska SA or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Intersport Polska SA vs. Play2Chill SA
Performance |
| Timeline |
| Intersport Polska |
| Play2Chill SA |
Intersport Polska and Play2Chill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intersport Polska and Play2Chill
The main advantage of trading using opposite Intersport Polska and Play2Chill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intersport Polska position performs unexpectedly, Play2Chill 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 Play2Chill will offset losses from the drop in Play2Chill'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 |
| Play2Chill vs. Asseco Business Solutions | Play2Chill vs. Detalion Games SA | Play2Chill vs. Asseco South Eastern | Play2Chill 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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