Correlation Between Jastrzebska Spotka and CD PROJEKT
Can any of the company-specific risk be diversified away by investing in both Jastrzebska Spotka and CD PROJEKT 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 Jastrzebska Spotka and CD PROJEKT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jastrzebska Spotka Weglowa and CD PROJEKT SA, you can compare the effects of market volatilities on Jastrzebska Spotka and CD PROJEKT 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 Jastrzebska Spotka with a short position of CD PROJEKT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jastrzebska Spotka and CD PROJEKT.
Diversification Opportunities for Jastrzebska Spotka and CD PROJEKT
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jastrzebska and CDR is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jastrzebska Spotka Weglowa and CD PROJEKT SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CD PROJEKT SA and Jastrzebska Spotka 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 Jastrzebska Spotka Weglowa are associated (or correlated) with CD PROJEKT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CD PROJEKT SA has no effect on the direction of Jastrzebska Spotka i.e., Jastrzebska Spotka and CD PROJEKT go up and down completely randomly.
Pair Corralation between Jastrzebska Spotka and CD PROJEKT
Assuming the 90 days trading horizon Jastrzebska Spotka Weglowa is expected to under-perform the CD PROJEKT. In addition to that, Jastrzebska Spotka is 1.08 times more volatile than CD PROJEKT SA. It trades about -0.06 of its total potential returns per unit of risk. CD PROJEKT SA is currently generating about 0.04 per unit of volatility. If you would invest 14,361 in CD PROJEKT SA on October 24, 2024 and sell it today you would earn a total of 6,819 from holding CD PROJEKT SA or generate 47.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jastrzebska Spotka Weglowa vs. CD PROJEKT SA
Performance |
| Timeline |
| Jastrzebska Spotka |
| CD PROJEKT SA |
Jastrzebska Spotka and CD PROJEKT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jastrzebska Spotka and CD PROJEKT
The main advantage of trading using opposite Jastrzebska Spotka and CD PROJEKT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jastrzebska Spotka position performs unexpectedly, CD PROJEKT 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 CD PROJEKT will offset losses from the drop in CD PROJEKT's long position.| Jastrzebska Spotka vs. GreenX Metals | Jastrzebska Spotka vs. ING Bank lski | Jastrzebska Spotka vs. Echo Investment SA | Jastrzebska Spotka vs. Carlson Investments SA |
| CD PROJEKT vs. Igoria Trade SA | CD PROJEKT vs. Investment Friends Capital | CD PROJEKT vs. Monnari Trade SA | CD PROJEKT vs. Medicalg |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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