Correlation Between MT 1997 and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both MT 1997 and Komercni Banka 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 MT 1997 and Komercni Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MT 1997 AS and Komercni Banka AS, you can compare the effects of market volatilities on MT 1997 and Komercni Banka 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 MT 1997 with a short position of Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of MT 1997 and Komercni Banka.
Diversification Opportunities for MT 1997 and Komercni Banka
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KLIKY and Komercni is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding MT 1997 AS and Komercni Banka AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka AS and MT 1997 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 MT 1997 AS are associated (or correlated) with Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka AS has no effect on the direction of MT 1997 i.e., MT 1997 and Komercni Banka go up and down completely randomly.
Pair Corralation between MT 1997 and Komercni Banka
Assuming the 90 days trading horizon MT 1997 AS is expected to under-perform the Komercni Banka. In addition to that, MT 1997 is 1.08 times more volatile than Komercni Banka AS. It trades about -0.24 of its total potential returns per unit of risk. Komercni Banka AS is currently generating about -0.07 per unit of volatility. If you would invest 81,600 in Komercni Banka AS on August 28, 2024 and sell it today you would lose (850.00) from holding Komercni Banka AS or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MT 1997 AS vs. Komercni Banka AS
Performance |
| Timeline |
| MT 1997 AS |
| Komercni Banka AS |
MT 1997 and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MT 1997 and Komercni Banka
The main advantage of trading using opposite MT 1997 and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MT 1997 position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka's long position.| MT 1997 vs. Komercni Banka AS | MT 1997 vs. Raiffeisen Bank International | MT 1997 vs. Vienna Insurance Group | MT 1997 vs. JT ARCH INVESTMENTS |
| Komercni Banka vs. Cez AS | Komercni Banka vs. Kofola CeskoSlovensko as | Komercni Banka vs. MT 1997 AS | Komercni Banka vs. HARDWARIO as |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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