Correlation Between Kogeneracja and Izolacja Jarocin
Can any of the company-specific risk be diversified away by investing in both Kogeneracja and Izolacja Jarocin 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 Izolacja Jarocin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kogeneracja SA and Izolacja Jarocin SA, you can compare the effects of market volatilities on Kogeneracja and Izolacja Jarocin 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 Izolacja Jarocin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kogeneracja and Izolacja Jarocin.
Diversification Opportunities for Kogeneracja and Izolacja Jarocin
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kogeneracja and Izolacja is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kogeneracja SA and Izolacja Jarocin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Izolacja Jarocin 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 Izolacja Jarocin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Izolacja Jarocin has no effect on the direction of Kogeneracja i.e., Kogeneracja and Izolacja Jarocin go up and down completely randomly.
Pair Corralation between Kogeneracja and Izolacja Jarocin
Assuming the 90 days trading horizon Kogeneracja SA is expected to under-perform the Izolacja Jarocin. In addition to that, Kogeneracja is 1.07 times more volatile than Izolacja Jarocin SA. It trades about -0.17 of its total potential returns per unit of risk. Izolacja Jarocin SA is currently generating about -0.06 per unit of volatility. If you would invest 343.00 in Izolacja Jarocin SA on September 4, 2024 and sell it today you would lose (13.00) from holding Izolacja Jarocin SA or give up 3.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kogeneracja SA vs. Izolacja Jarocin SA
Performance |
| Timeline |
| Kogeneracja SA |
| Izolacja Jarocin |
Kogeneracja and Izolacja Jarocin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kogeneracja and Izolacja Jarocin
The main advantage of trading using opposite Kogeneracja and Izolacja Jarocin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kogeneracja position performs unexpectedly, Izolacja Jarocin 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 Izolacja Jarocin will offset losses from the drop in Izolacja Jarocin's long position.| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja vs. Polski Koncern Naftowy |
| Izolacja Jarocin vs. Banco Santander SA | Izolacja Jarocin vs. UniCredit SpA | Izolacja Jarocin vs. CEZ as | Izolacja Jarocin vs. Polski Koncern Naftowy |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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