Correlation Between KGHM Polska and Hortico SA
Can any of the company-specific risk be diversified away by investing in both KGHM Polska and Hortico SA 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 KGHM Polska and Hortico SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KGHM Polska Miedz and Hortico SA, you can compare the effects of market volatilities on KGHM Polska and Hortico SA 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 KGHM Polska with a short position of Hortico SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGHM Polska and Hortico SA.
Diversification Opportunities for KGHM Polska and Hortico SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KGHM and Hortico is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KGHM Polska Miedz and Hortico SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hortico SA and KGHM 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 KGHM Polska Miedz are associated (or correlated) with Hortico SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hortico SA has no effect on the direction of KGHM Polska i.e., KGHM Polska and Hortico SA go up and down completely randomly.
Pair Corralation between KGHM Polska and Hortico SA
If you would invest 12,510 in KGHM Polska Miedz on November 19, 2024 and sell it today you would earn a total of 1,170 from holding KGHM Polska Miedz or generate 9.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KGHM Polska Miedz vs. Hortico SA
Performance |
| Timeline |
| KGHM Polska Miedz |
| Hortico SA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
KGHM Polska and Hortico SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGHM Polska and Hortico SA
The main advantage of trading using opposite KGHM Polska and Hortico SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGHM Polska position performs unexpectedly, Hortico SA 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 Hortico SA will offset losses from the drop in Hortico SA's long position.| KGHM Polska vs. Saule Technologies SA | KGHM Polska vs. Asseco Business Solutions | KGHM Polska vs. Detalion Games SA | KGHM Polska vs. Kogeneracja SA |
| Hortico SA vs. Bank Millennium SA | Hortico SA vs. Ultimate Games SA | Hortico SA vs. Santander Bank Polska | Hortico SA vs. Varsav Game Studios |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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