Correlation Between Kogeneracja and Comp SA
Can any of the company-specific risk be diversified away by investing in both Kogeneracja and Comp 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 Comp 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 Comp SA, you can compare the effects of market volatilities on Kogeneracja and Comp 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 Comp SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kogeneracja and Comp SA.
Diversification Opportunities for Kogeneracja and Comp SA
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kogeneracja and Comp is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kogeneracja SA and Comp SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comp 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 Comp SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comp SA has no effect on the direction of Kogeneracja i.e., Kogeneracja and Comp SA go up and down completely randomly.
Pair Corralation between Kogeneracja and Comp SA
Assuming the 90 days trading horizon Kogeneracja SA is expected to under-perform the Comp SA. In addition to that, Kogeneracja is 1.27 times more volatile than Comp SA. It trades about -0.05 of its total potential returns per unit of risk. Comp SA is currently generating about 0.15 per unit of volatility. If you would invest 7,840 in Comp SA on October 22, 2024 and sell it today you would earn a total of 6,560 from holding Comp SA or generate 83.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.55% |
| Values | Daily Returns |
Kogeneracja SA vs. Comp SA
Performance |
| Timeline |
| Kogeneracja SA |
| Comp SA |
Kogeneracja and Comp SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kogeneracja and Comp SA
The main advantage of trading using opposite Kogeneracja and Comp SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kogeneracja position performs unexpectedly, Comp 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 Comp SA will offset losses from the drop in Comp SA's long position.| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja vs. Polski Koncern Naftowy |
| Comp SA vs. Creotech Instruments SA | Comp SA vs. UF Games SA | Comp SA vs. GreenX Metals | Comp SA vs. PZ Cormay 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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