Correlation Between Kofola CeskoSlovensko and Toma As
Can any of the company-specific risk be diversified away by investing in both Kofola CeskoSlovensko and Toma As 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 Toma As 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 Toma as, you can compare the effects of market volatilities on Kofola CeskoSlovensko and Toma As 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 Toma As. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kofola CeskoSlovensko and Toma As.
Diversification Opportunities for Kofola CeskoSlovensko and Toma As
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kofola and Toma is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Kofola CeskoSlovensko as and Toma as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toma 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 Toma As. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toma as has no effect on the direction of Kofola CeskoSlovensko i.e., Kofola CeskoSlovensko and Toma As go up and down completely randomly.
Pair Corralation between Kofola CeskoSlovensko and Toma As
Assuming the 90 days trading horizon Kofola CeskoSlovensko as is expected to generate 1.5 times more return on investment than Toma As. However, Kofola CeskoSlovensko is 1.5 times more volatile than Toma as. It trades about 0.5 of its potential returns per unit of risk. Toma as is currently generating about 0.18 per unit of risk. If you would invest 33,600 in Kofola CeskoSlovensko as on August 28, 2024 and sell it today you would earn a total of 4,600 from holding Kofola CeskoSlovensko as or generate 13.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kofola CeskoSlovensko as vs. Toma as
Performance |
| Timeline |
| Kofola CeskoSlovensko |
| Toma as |
Kofola CeskoSlovensko and Toma As Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kofola CeskoSlovensko and Toma As
The main advantage of trading using opposite Kofola CeskoSlovensko and Toma As positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kofola CeskoSlovensko position performs unexpectedly, Toma As 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 Toma As will offset losses from the drop in Toma As' 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 |
| Toma As vs. UNIQA Insurance Group | Toma As vs. Moneta Money Bank | Toma As vs. Erste Group Bank | Toma As vs. JT ARCH INVESTMENTS |
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 CEOs Directory module to screen CEOs from public companies around the world.
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