Correlation Between Komercni Banka and Photon Energy
Can any of the company-specific risk be diversified away by investing in both Komercni Banka 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 Komercni Banka and Photon Energy 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 Photon Energy NV, you can compare the effects of market volatilities on Komercni Banka 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 Komercni Banka with a short position of Photon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and Photon Energy.
Diversification Opportunities for Komercni Banka and Photon Energy
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Komercni and Photon is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka 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 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 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 Komercni Banka i.e., Komercni Banka and Photon Energy go up and down completely randomly.
Pair Corralation between Komercni Banka and Photon Energy
Assuming the 90 days trading horizon Komercni Banka AS is expected to generate 0.49 times more return on investment than Photon Energy. However, Komercni Banka AS is 2.02 times less risky than Photon Energy. It trades about 0.15 of its potential returns per unit of risk. Photon Energy NV is currently generating about -0.13 per unit of risk. If you would invest 73,253 in Komercni Banka AS on December 2, 2024 and sell it today you would earn a total of 31,047 from holding Komercni Banka AS or generate 42.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Komercni Banka AS vs. Photon Energy NV
Performance |
| Timeline |
| Komercni Banka AS |
| Photon Energy NV |
Komercni Banka and Photon Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komercni Banka and Photon Energy
The main advantage of trading using opposite Komercni Banka and Photon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka 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.| Komercni Banka vs. Cez AS | Komercni Banka vs. Moneta Money Bank | Komercni Banka vs. Erste Group Bank | Komercni Banka vs. Philip Morris CR |
| Photon Energy vs. JT ARCH INVESTMENTS | Photon Energy vs. UNIQA Insurance Group | Photon Energy vs. Erste Group Bank | Photon Energy vs. Raiffeisen Bank International |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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