Correlation Between Kogeneracja and Medicalg
Can any of the company-specific risk be diversified away by investing in both Kogeneracja and Medicalg 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 Medicalg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kogeneracja SA and Medicalg, you can compare the effects of market volatilities on Kogeneracja and Medicalg 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 Medicalg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kogeneracja and Medicalg.
Diversification Opportunities for Kogeneracja and Medicalg
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kogeneracja and Medicalg is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kogeneracja SA and Medicalg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medicalg 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 Medicalg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medicalg has no effect on the direction of Kogeneracja i.e., Kogeneracja and Medicalg go up and down completely randomly.
Pair Corralation between Kogeneracja and Medicalg
Assuming the 90 days trading horizon Kogeneracja SA is expected to generate 0.73 times more return on investment than Medicalg. However, Kogeneracja SA is 1.38 times less risky than Medicalg. It trades about 0.07 of its potential returns per unit of risk. Medicalg is currently generating about 0.04 per unit of risk. If you would invest 2,520 in Kogeneracja SA on September 5, 2024 and sell it today you would earn a total of 2,660 from holding Kogeneracja SA or generate 105.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kogeneracja SA vs. Medicalg
Performance |
| Timeline |
| Kogeneracja SA |
| Medicalg |
Kogeneracja and Medicalg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kogeneracja and Medicalg
The main advantage of trading using opposite Kogeneracja and Medicalg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kogeneracja position performs unexpectedly, Medicalg 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 Medicalg will offset losses from the drop in Medicalg's long position.| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja vs. Polski Koncern Naftowy |
| Medicalg vs. Asseco Business Solutions | Medicalg vs. Kogeneracja SA | Medicalg vs. Asseco South Eastern | Medicalg vs. Movie Games 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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