Correlation Between Kogeneracja and ED Invest
Can any of the company-specific risk be diversified away by investing in both Kogeneracja and ED Invest 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 ED Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kogeneracja SA and ED Invest SA, you can compare the effects of market volatilities on Kogeneracja and ED Invest 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 ED Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kogeneracja and ED Invest.
Diversification Opportunities for Kogeneracja and ED Invest
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kogeneracja and EDI is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kogeneracja SA and ED Invest SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ED Invest 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 ED Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ED Invest SA has no effect on the direction of Kogeneracja i.e., Kogeneracja and ED Invest go up and down completely randomly.
Pair Corralation between Kogeneracja and ED Invest
Assuming the 90 days trading horizon Kogeneracja SA is expected to under-perform the ED Invest. But the stock apears to be less risky and, when comparing its historical volatility, Kogeneracja SA is 1.39 times less risky than ED Invest. The stock trades about -0.17 of its potential returns per unit of risk. The ED Invest SA is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 560.00 in ED Invest SA on September 4, 2024 and sell it today you would earn a total of 88.00 from holding ED Invest SA or generate 15.71% 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. ED Invest SA
Performance |
| Timeline |
| Kogeneracja SA |
| ED Invest SA |
Kogeneracja and ED Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kogeneracja and ED Invest
The main advantage of trading using opposite Kogeneracja and ED Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kogeneracja position performs unexpectedly, ED Invest 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 ED Invest will offset losses from the drop in ED Invest's long position.| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja vs. Polski Koncern Naftowy |
| ED Invest vs. Monnari Trade SA | ED Invest vs. New Tech Venture | ED Invest vs. Skyline Investment SA | ED Invest vs. Tower Investments 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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