Correlation Between Intersport Polska and Bank Polska
Can any of the company-specific risk be diversified away by investing in both Intersport Polska and Bank 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 Bank 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 Bank Polska Kasa, you can compare the effects of market volatilities on Intersport Polska and Bank 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 Bank Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intersport Polska and Bank Polska.
Diversification Opportunities for Intersport Polska and Bank Polska
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Intersport and Bank is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Intersport Polska SA and Bank Polska Kasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Polska Kasa 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 Bank Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Polska Kasa has no effect on the direction of Intersport Polska i.e., Intersport Polska and Bank Polska go up and down completely randomly.
Pair Corralation between Intersport Polska and Bank Polska
Assuming the 90 days trading horizon Intersport Polska SA is expected to generate 2.21 times more return on investment than Bank Polska. However, Intersport Polska is 2.21 times more volatile than Bank Polska Kasa. It trades about 0.13 of its potential returns per unit of risk. Bank Polska Kasa is currently generating about -0.05 per unit of risk. If you would invest 63.00 in Intersport Polska SA on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Intersport Polska SA or generate 12.7% 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. Bank Polska Kasa
Performance |
| Timeline |
| Intersport Polska |
| Bank Polska Kasa |
Intersport Polska and Bank Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intersport Polska and Bank Polska
The main advantage of trading using opposite Intersport Polska and Bank Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intersport Polska position performs unexpectedly, Bank 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 Bank Polska will offset losses from the drop in Bank 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 |
| Bank Polska vs. M Food SA | Bank Polska vs. Cloud Technologies SA | Bank Polska vs. Biztech Konsulting SA | Bank Polska vs. Quantum Software 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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