Correlation Between Kogeneracja and Poznanska Korporacja
Can any of the company-specific risk be diversified away by investing in both Kogeneracja and Poznanska Korporacja 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 Poznanska Korporacja into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kogeneracja SA and Poznanska Korporacja Budowlana, you can compare the effects of market volatilities on Kogeneracja and Poznanska Korporacja 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 Poznanska Korporacja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kogeneracja and Poznanska Korporacja.
Diversification Opportunities for Kogeneracja and Poznanska Korporacja
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kogeneracja and Poznanska is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kogeneracja SA and Poznanska Korporacja Budowlana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poznanska Korporacja 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 Poznanska Korporacja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poznanska Korporacja has no effect on the direction of Kogeneracja i.e., Kogeneracja and Poznanska Korporacja go up and down completely randomly.
Pair Corralation between Kogeneracja and Poznanska Korporacja
Assuming the 90 days trading horizon Kogeneracja SA is expected to under-perform the Poznanska Korporacja. In addition to that, Kogeneracja is 1.57 times more volatile than Poznanska Korporacja Budowlana. It trades about -0.29 of its total potential returns per unit of risk. Poznanska Korporacja Budowlana is currently generating about -0.41 per unit of volatility. If you would invest 2,040 in Poznanska Korporacja Budowlana on September 13, 2024 and sell it today you would lose (300.00) from holding Poznanska Korporacja Budowlana or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kogeneracja SA vs. Poznanska Korporacja Budowlana
Performance |
| Timeline |
| Kogeneracja SA |
| Poznanska Korporacja |
Kogeneracja and Poznanska Korporacja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kogeneracja and Poznanska Korporacja
The main advantage of trading using opposite Kogeneracja and Poznanska Korporacja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kogeneracja position performs unexpectedly, Poznanska Korporacja 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 Poznanska Korporacja will offset losses from the drop in Poznanska Korporacja's long position.| Kogeneracja vs. PZ Cormay SA | Kogeneracja vs. Pyramid Games SA | Kogeneracja vs. Gamedust SA | Kogeneracja vs. Gaming Factory SA |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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