Correlation Between Kogeneracja and APS Energia
Can any of the company-specific risk be diversified away by investing in both Kogeneracja and APS Energia 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 APS Energia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kogeneracja SA and APS Energia SA, you can compare the effects of market volatilities on Kogeneracja and APS Energia 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 APS Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kogeneracja and APS Energia.
Diversification Opportunities for Kogeneracja and APS Energia
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kogeneracja and APS is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kogeneracja SA and APS Energia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APS Energia 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 APS Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APS Energia SA has no effect on the direction of Kogeneracja i.e., Kogeneracja and APS Energia go up and down completely randomly.
Pair Corralation between Kogeneracja and APS Energia
Assuming the 90 days trading horizon Kogeneracja SA is expected to generate 0.73 times more return on investment than APS Energia. However, Kogeneracja SA is 1.36 times less risky than APS Energia. It trades about 0.07 of its potential returns per unit of risk. APS Energia SA is currently generating about 0.01 per unit of risk. If you would invest 2,530 in Kogeneracja SA on September 4, 2024 and sell it today you would earn a total of 2,720 from holding Kogeneracja SA or generate 107.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kogeneracja SA vs. APS Energia SA
Performance |
| Timeline |
| Kogeneracja SA |
| APS Energia SA |
Kogeneracja and APS Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kogeneracja and APS Energia
The main advantage of trading using opposite Kogeneracja and APS Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kogeneracja position performs unexpectedly, APS Energia 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 APS Energia will offset losses from the drop in APS Energia's long position.| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja vs. Polski Koncern Naftowy |
| APS Energia vs. Asseco Business Solutions | APS Energia vs. Kogeneracja SA | APS Energia vs. Asseco South Eastern | APS Energia vs. CFI Holding 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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