Correlation Between Komercni Banka and SAB Finance
Can any of the company-specific risk be diversified away by investing in both Komercni Banka and SAB Finance 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 SAB Finance 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 SAB Finance as, you can compare the effects of market volatilities on Komercni Banka and SAB Finance 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 SAB Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and SAB Finance.
Diversification Opportunities for Komercni Banka and SAB Finance
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Komercni and SAB is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka AS and SAB Finance as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAB Finance as 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 SAB Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAB Finance as has no effect on the direction of Komercni Banka i.e., Komercni Banka and SAB Finance go up and down completely randomly.
Pair Corralation between Komercni Banka and SAB Finance
Assuming the 90 days trading horizon Komercni Banka AS is expected to under-perform the SAB Finance. In addition to that, Komercni Banka is 1.02 times more volatile than SAB Finance as. It trades about -0.07 of its total potential returns per unit of risk. SAB Finance as is currently generating about -0.07 per unit of volatility. If you would invest 105,000 in SAB Finance as on August 28, 2024 and sell it today you would lose (1,000.00) from holding SAB Finance as or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Komercni Banka AS vs. SAB Finance as
Performance |
| Timeline |
| Komercni Banka AS |
| SAB Finance as |
Komercni Banka and SAB Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komercni Banka and SAB Finance
The main advantage of trading using opposite Komercni Banka and SAB Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka position performs unexpectedly, SAB Finance 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 SAB Finance will offset losses from the drop in SAB Finance's long position.| Komercni Banka vs. Cez AS | Komercni Banka vs. Kofola CeskoSlovensko as | Komercni Banka vs. MT 1997 AS | Komercni Banka vs. HARDWARIO as |
| SAB Finance vs. Erste Group Bank | SAB Finance vs. Moneta Money Bank | SAB Finance vs. Vienna Insurance Group | SAB Finance 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |