Correlation Between JT ARCH and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both JT ARCH and Komercni Banka 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 JT ARCH and Komercni Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JT ARCH INVESTMENTS and Komercni Banka AS, you can compare the effects of market volatilities on JT ARCH and Komercni Banka 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 JT ARCH with a short position of Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of JT ARCH and Komercni Banka.
Diversification Opportunities for JT ARCH and Komercni Banka
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JTINA and Komercni is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding JT ARCH INVESTMENTS and Komercni Banka AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka AS and JT ARCH 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 JT ARCH INVESTMENTS are associated (or correlated) with Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka AS has no effect on the direction of JT ARCH i.e., JT ARCH and Komercni Banka go up and down completely randomly.
Pair Corralation between JT ARCH and Komercni Banka
Assuming the 90 days trading horizon JT ARCH is expected to generate 1.47 times less return on investment than Komercni Banka. But when comparing it to its historical volatility, JT ARCH INVESTMENTS is 1.96 times less risky than Komercni Banka. It trades about 0.43 of its potential returns per unit of risk. Komercni Banka AS is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 85,300 in Komercni Banka AS on November 3, 2024 and sell it today you would earn a total of 3,800 from holding Komercni Banka AS or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
JT ARCH INVESTMENTS vs. Komercni Banka AS
Performance |
| Timeline |
| JT ARCH INVESTMENTS |
| Komercni Banka AS |
JT ARCH and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JT ARCH and Komercni Banka
The main advantage of trading using opposite JT ARCH and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JT ARCH position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka's long position.| JT ARCH vs. Raiffeisen Bank International | JT ARCH vs. Komercni Banka AS | JT ARCH vs. Vienna Insurance Group | JT ARCH vs. Moneta Money Bank |
| Komercni Banka vs. Cez AS | Komercni Banka vs. Moneta Money Bank | Komercni Banka vs. Erste Group Bank | Komercni Banka vs. Philip Morris CR |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |