Correlation Between Izolacja Jarocin and Kogeneracja
Can any of the company-specific risk be diversified away by investing in both Izolacja Jarocin and Kogeneracja 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 Izolacja Jarocin and Kogeneracja into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Izolacja Jarocin SA and Kogeneracja SA, you can compare the effects of market volatilities on Izolacja Jarocin and Kogeneracja 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 Izolacja Jarocin with a short position of Kogeneracja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Izolacja Jarocin and Kogeneracja.
Diversification Opportunities for Izolacja Jarocin and Kogeneracja
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Izolacja and Kogeneracja is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Izolacja Jarocin SA and Kogeneracja SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kogeneracja SA and Izolacja Jarocin 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 Izolacja Jarocin SA are associated (or correlated) with Kogeneracja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kogeneracja SA has no effect on the direction of Izolacja Jarocin i.e., Izolacja Jarocin and Kogeneracja go up and down completely randomly.
Pair Corralation between Izolacja Jarocin and Kogeneracja
Assuming the 90 days trading horizon Izolacja Jarocin SA is expected to generate 0.93 times more return on investment than Kogeneracja. However, Izolacja Jarocin SA is 1.07 times less risky than Kogeneracja. It trades about -0.06 of its potential returns per unit of risk. Kogeneracja SA is currently generating about -0.17 per unit of risk. If you would invest 343.00 in Izolacja Jarocin SA on September 4, 2024 and sell it today you would lose (13.00) from holding Izolacja Jarocin SA or give up 3.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Izolacja Jarocin SA vs. Kogeneracja SA
Performance |
| Timeline |
| Izolacja Jarocin |
| Kogeneracja SA |
Izolacja Jarocin and Kogeneracja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Izolacja Jarocin and Kogeneracja
The main advantage of trading using opposite Izolacja Jarocin and Kogeneracja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Izolacja Jarocin position performs unexpectedly, Kogeneracja 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 Kogeneracja will offset losses from the drop in Kogeneracja's long position.| Izolacja Jarocin vs. Banco Santander SA | Izolacja Jarocin vs. UniCredit SpA | Izolacja Jarocin vs. CEZ as | Izolacja Jarocin vs. Polski Koncern Naftowy |
| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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