Correlation Between Kogeneracja and 4Mass SA
Can any of the company-specific risk be diversified away by investing in both Kogeneracja and 4Mass 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 Kogeneracja and 4Mass SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kogeneracja SA and 4Mass SA, you can compare the effects of market volatilities on Kogeneracja and 4Mass 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 Kogeneracja with a short position of 4Mass SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kogeneracja and 4Mass SA.
Diversification Opportunities for Kogeneracja and 4Mass SA
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kogeneracja and 4Mass is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kogeneracja SA and 4Mass SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4Mass SA and Kogeneracja 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 Kogeneracja SA are associated (or correlated) with 4Mass SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4Mass SA has no effect on the direction of Kogeneracja i.e., Kogeneracja and 4Mass SA go up and down completely randomly.
Pair Corralation between Kogeneracja and 4Mass SA
Assuming the 90 days trading horizon Kogeneracja SA is expected to generate 1.96 times more return on investment than 4Mass SA. However, Kogeneracja is 1.96 times more volatile than 4Mass SA. It trades about -0.17 of its potential returns per unit of risk. 4Mass SA is currently generating about -0.36 per unit of risk. If you would invest 5,840 in Kogeneracja SA on September 4, 2024 and sell it today you would lose (590.00) from holding Kogeneracja SA or give up 10.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kogeneracja SA vs. 4Mass SA
Performance |
| Timeline |
| Kogeneracja SA |
| 4Mass SA |
Kogeneracja and 4Mass SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kogeneracja and 4Mass SA
The main advantage of trading using opposite Kogeneracja and 4Mass SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kogeneracja position performs unexpectedly, 4Mass 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 4Mass SA will offset losses from the drop in 4Mass SA's long position.| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja vs. Polski Koncern Naftowy |
| 4Mass SA vs. Asseco Business Solutions | 4Mass SA vs. Kogeneracja SA | 4Mass SA vs. Asseco South Eastern | 4Mass SA vs. Movie Games 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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