Correlation Between Kogeneracja and Astarta Holding
Can any of the company-specific risk be diversified away by investing in both Kogeneracja and Astarta Holding 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 Astarta Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kogeneracja SA and Astarta Holding NV, you can compare the effects of market volatilities on Kogeneracja and Astarta Holding 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 Astarta Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kogeneracja and Astarta Holding.
Diversification Opportunities for Kogeneracja and Astarta Holding
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kogeneracja and Astarta is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kogeneracja SA and Astarta Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astarta Holding NV 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 Astarta Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astarta Holding NV has no effect on the direction of Kogeneracja i.e., Kogeneracja and Astarta Holding go up and down completely randomly.
Pair Corralation between Kogeneracja and Astarta Holding
Assuming the 90 days trading horizon Kogeneracja SA is expected to generate 1.44 times more return on investment than Astarta Holding. However, Kogeneracja is 1.44 times more volatile than Astarta Holding NV. It trades about 0.06 of its potential returns per unit of risk. Astarta Holding NV is currently generating about 0.07 per unit of risk. If you would invest 3,590 in Kogeneracja SA on September 12, 2024 and sell it today you would earn a total of 1,740 from holding Kogeneracja SA or generate 48.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kogeneracja SA vs. Astarta Holding NV
Performance |
| Timeline |
| Kogeneracja SA |
| Astarta Holding NV |
Kogeneracja and Astarta Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kogeneracja and Astarta Holding
The main advantage of trading using opposite Kogeneracja and Astarta Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kogeneracja position performs unexpectedly, Astarta Holding 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 Astarta Holding will offset losses from the drop in Astarta Holding's long position.| Kogeneracja vs. CI Games SA | Kogeneracja vs. Globe Trade Centre | Kogeneracja vs. Medicalg | Kogeneracja vs. Logintrade SA |
| Astarta Holding vs. Agroton Public | Astarta Holding vs. Asseco Business Solutions | Astarta Holding vs. Detalion Games SA | Astarta Holding vs. Kogeneracja 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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