Correlation Between Kogeneracja and Skyline Investment
Can any of the company-specific risk be diversified away by investing in both Kogeneracja and Skyline Investment 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 Skyline Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kogeneracja SA and Skyline Investment SA, you can compare the effects of market volatilities on Kogeneracja and Skyline Investment 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 Skyline Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kogeneracja and Skyline Investment.
Diversification Opportunities for Kogeneracja and Skyline Investment
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kogeneracja and Skyline is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kogeneracja SA and Skyline Investment SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skyline Investment 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 Skyline Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skyline Investment has no effect on the direction of Kogeneracja i.e., Kogeneracja and Skyline Investment go up and down completely randomly.
Pair Corralation between Kogeneracja and Skyline Investment
Assuming the 90 days trading horizon Kogeneracja is expected to generate 1.07 times less return on investment than Skyline Investment. But when comparing it to its historical volatility, Kogeneracja SA is 1.38 times less risky than Skyline Investment. It trades about 0.07 of its potential returns per unit of risk. Skyline Investment SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 66.00 in Skyline Investment SA on September 3, 2024 and sell it today you would earn a total of 83.00 from holding Skyline Investment SA or generate 125.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kogeneracja SA vs. Skyline Investment SA
Performance |
| Timeline |
| Kogeneracja SA |
| Skyline Investment |
Kogeneracja and Skyline Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kogeneracja and Skyline Investment
The main advantage of trading using opposite Kogeneracja and Skyline Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kogeneracja position performs unexpectedly, Skyline Investment 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 Skyline Investment will offset losses from the drop in Skyline Investment's long position.| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja vs. Polski Koncern Naftowy |
| Skyline Investment vs. X Trade Brokers | Skyline Investment vs. Novavis Group SA | Skyline Investment vs. Asseco Business Solutions | Skyline Investment vs. Kogeneracja 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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