Correlation Between Kofola CeskoSlovensko and RMS Mezzanine
Can any of the company-specific risk be diversified away by investing in both Kofola CeskoSlovensko and RMS Mezzanine 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 RMS Mezzanine 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 RMS Mezzanine AS, you can compare the effects of market volatilities on Kofola CeskoSlovensko and RMS Mezzanine 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 RMS Mezzanine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kofola CeskoSlovensko and RMS Mezzanine.
Diversification Opportunities for Kofola CeskoSlovensko and RMS Mezzanine
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kofola and RMS is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kofola CeskoSlovensko as and RMS Mezzanine AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RMS Mezzanine 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 RMS Mezzanine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RMS Mezzanine AS has no effect on the direction of Kofola CeskoSlovensko i.e., Kofola CeskoSlovensko and RMS Mezzanine go up and down completely randomly.
Pair Corralation between Kofola CeskoSlovensko and RMS Mezzanine
Assuming the 90 days trading horizon Kofola CeskoSlovensko is expected to generate 4.07 times less return on investment than RMS Mezzanine. But when comparing it to its historical volatility, Kofola CeskoSlovensko as is 11.05 times less risky than RMS Mezzanine. It trades about 0.13 of its potential returns per unit of risk. RMS Mezzanine AS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 200.00 in RMS Mezzanine AS on September 12, 2024 and sell it today you would lose (35.00) from holding RMS Mezzanine AS or give up 17.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kofola CeskoSlovensko as vs. RMS Mezzanine AS
Performance |
| Timeline |
| Kofola CeskoSlovensko |
| RMS Mezzanine AS |
Kofola CeskoSlovensko and RMS Mezzanine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kofola CeskoSlovensko and RMS Mezzanine
The main advantage of trading using opposite Kofola CeskoSlovensko and RMS Mezzanine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kofola CeskoSlovensko position performs unexpectedly, RMS Mezzanine 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 RMS Mezzanine will offset losses from the drop in RMS Mezzanine'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 |
| RMS Mezzanine vs. Cez AS | RMS Mezzanine vs. Kofola CeskoSlovensko as | RMS Mezzanine vs. Primoco UAV SE | RMS Mezzanine vs. MT 1997 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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