Correlation Between Kogeneracja and Novita SA
Can any of the company-specific risk be diversified away by investing in both Kogeneracja and Novita 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 Novita 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 Novita SA, you can compare the effects of market volatilities on Kogeneracja and Novita 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 Novita SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kogeneracja and Novita SA.
Diversification Opportunities for Kogeneracja and Novita SA
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kogeneracja and Novita is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kogeneracja SA and Novita SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novita 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 Novita SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novita SA has no effect on the direction of Kogeneracja i.e., Kogeneracja and Novita SA go up and down completely randomly.
Pair Corralation between Kogeneracja and Novita SA
Assuming the 90 days trading horizon Kogeneracja SA is expected to under-perform the Novita SA. In addition to that, Kogeneracja is 1.48 times more volatile than Novita SA. It trades about -0.24 of its total potential returns per unit of risk. Novita SA is currently generating about 0.0 per unit of volatility. If you would invest 11,538 in Novita SA on September 19, 2024 and sell it today you would lose (38.00) from holding Novita SA or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kogeneracja SA vs. Novita SA
Performance |
| Timeline |
| Kogeneracja SA |
| Novita SA |
Kogeneracja and Novita SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kogeneracja and Novita SA
The main advantage of trading using opposite Kogeneracja and Novita SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kogeneracja position performs unexpectedly, Novita 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 Novita SA will offset losses from the drop in Novita SA's long position.| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja vs. Polski Koncern Naftowy |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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