Correlation Between Kofola CeskoSlovensko and Photon Energy
Can any of the company-specific risk be diversified away by investing in both Kofola CeskoSlovensko and Photon Energy 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 Photon Energy 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 Photon Energy NV, you can compare the effects of market volatilities on Kofola CeskoSlovensko and Photon Energy 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 Photon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kofola CeskoSlovensko and Photon Energy.
Diversification Opportunities for Kofola CeskoSlovensko and Photon Energy
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kofola and Photon is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kofola CeskoSlovensko as and Photon Energy NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photon Energy NV 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 Photon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photon Energy NV has no effect on the direction of Kofola CeskoSlovensko i.e., Kofola CeskoSlovensko and Photon Energy go up and down completely randomly.
Pair Corralation between Kofola CeskoSlovensko and Photon Energy
Assuming the 90 days trading horizon Kofola CeskoSlovensko as is expected to generate 0.36 times more return on investment than Photon Energy. However, Kofola CeskoSlovensko as is 2.78 times less risky than Photon Energy. It trades about 0.5 of its potential returns per unit of risk. Photon Energy NV is currently generating about -0.22 per unit of risk. If you would invest 33,200 in Kofola CeskoSlovensko as on September 1, 2024 and sell it today you would earn a total of 4,800 from holding Kofola CeskoSlovensko as or generate 14.46% 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. Photon Energy NV
Performance |
| Timeline |
| Kofola CeskoSlovensko |
| Photon Energy NV |
Kofola CeskoSlovensko and Photon Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kofola CeskoSlovensko and Photon Energy
The main advantage of trading using opposite Kofola CeskoSlovensko and Photon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kofola CeskoSlovensko position performs unexpectedly, Photon Energy 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 Photon Energy will offset losses from the drop in Photon Energy'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 |
| Photon Energy vs. Vienna Insurance Group | Photon Energy vs. UNIQA Insurance Group | Photon Energy vs. Moneta Money Bank |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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