Correlation Between Komercni Banka and Coloseum Holding
Can any of the company-specific risk be diversified away by investing in both Komercni Banka and Coloseum Holding 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 Komercni Banka and Coloseum Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komercni Banka AS and Coloseum Holding as, you can compare the effects of market volatilities on Komercni Banka and Coloseum Holding 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 Komercni Banka with a short position of Coloseum Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and Coloseum Holding.
Diversification Opportunities for Komercni Banka and Coloseum Holding
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Komercni and Coloseum is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka AS and Coloseum Holding as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coloseum Holding and Komercni Banka 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 Komercni Banka AS are associated (or correlated) with Coloseum Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coloseum Holding has no effect on the direction of Komercni Banka i.e., Komercni Banka and Coloseum Holding go up and down completely randomly.
Pair Corralation between Komercni Banka and Coloseum Holding
Assuming the 90 days trading horizon Komercni Banka AS is expected to generate 0.16 times more return on investment than Coloseum Holding. However, Komercni Banka AS is 6.1 times less risky than Coloseum Holding. It trades about 0.11 of its potential returns per unit of risk. Coloseum Holding as is currently generating about -0.02 per unit of risk. If you would invest 62,206 in Komercni Banka AS on September 1, 2024 and sell it today you would earn a total of 19,294 from holding Komercni Banka AS or generate 31.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Komercni Banka AS vs. Coloseum Holding as
Performance |
| Timeline |
| Komercni Banka AS |
| Coloseum Holding |
Komercni Banka and Coloseum Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komercni Banka and Coloseum Holding
The main advantage of trading using opposite Komercni Banka and Coloseum Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka position performs unexpectedly, Coloseum Holding 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 Coloseum Holding will offset losses from the drop in Coloseum Holding's long position.| Komercni Banka vs. Cez AS | Komercni Banka vs. Moneta Money Bank | Komercni Banka vs. Erste Group Bank | Komercni Banka vs. Philip Morris CR |
| Coloseum Holding vs. Volkswagen AG | Coloseum Holding vs. GEVORKYAN as | Coloseum Holding vs. Philip Morris CR | Coloseum Holding vs. Tatry Mountain Resorts |
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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