Correlation Between Kofola CeskoSlovensko and KARO INVEST
Can any of the company-specific risk be diversified away by investing in both Kofola CeskoSlovensko and KARO INVEST 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 Kofola CeskoSlovensko and KARO INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kofola CeskoSlovensko as and KARO INVEST as, you can compare the effects of market volatilities on Kofola CeskoSlovensko and KARO INVEST 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 Kofola CeskoSlovensko with a short position of KARO INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kofola CeskoSlovensko and KARO INVEST.
Diversification Opportunities for Kofola CeskoSlovensko and KARO INVEST
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kofola and KARO is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kofola CeskoSlovensko as and KARO INVEST as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KARO INVEST as and Kofola CeskoSlovensko 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 Kofola CeskoSlovensko as are associated (or correlated) with KARO INVEST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KARO INVEST as has no effect on the direction of Kofola CeskoSlovensko i.e., Kofola CeskoSlovensko and KARO INVEST go up and down completely randomly.
Pair Corralation between Kofola CeskoSlovensko and KARO INVEST
Assuming the 90 days trading horizon Kofola CeskoSlovensko as is expected to generate 0.68 times more return on investment than KARO INVEST. However, Kofola CeskoSlovensko as is 1.47 times less risky than KARO INVEST. It trades about 0.62 of its potential returns per unit of risk. KARO INVEST as is currently generating about 0.01 per unit of risk. If you would invest 33,100 in Kofola CeskoSlovensko as on August 26, 2024 and sell it today you would earn a total of 5,500 from holding Kofola CeskoSlovensko as or generate 16.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kofola CeskoSlovensko as vs. KARO INVEST as
Performance |
| Timeline |
| Kofola CeskoSlovensko |
| KARO INVEST as |
Kofola CeskoSlovensko and KARO INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kofola CeskoSlovensko and KARO INVEST
The main advantage of trading using opposite Kofola CeskoSlovensko and KARO INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kofola CeskoSlovensko position performs unexpectedly, KARO INVEST 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 KARO INVEST will offset losses from the drop in KARO INVEST's long position.| Kofola CeskoSlovensko vs. Moneta Money Bank | Kofola CeskoSlovensko vs. Komercni Banka AS | Kofola CeskoSlovensko vs. Cez AS | Kofola CeskoSlovensko vs. Erste Group Bank |
| KARO INVEST vs. UNIQA Insurance Group | KARO INVEST vs. JT ARCH INVESTMENTS | KARO INVEST vs. Komercni Banka AS | KARO INVEST vs. Vienna Insurance Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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