Correlation Between KRA Dd and AD Plastik
Can any of the company-specific risk be diversified away by investing in both KRA Dd and AD Plastik 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 KRA Dd and AD Plastik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KRA dd and AD Plastik dd, you can compare the effects of market volatilities on KRA Dd and AD Plastik 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 KRA Dd with a short position of AD Plastik. Check out your portfolio center. Please also check ongoing floating volatility patterns of KRA Dd and AD Plastik.
Diversification Opportunities for KRA Dd and AD Plastik
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KRA and ADPL is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding KRA dd and AD Plastik dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AD Plastik dd and KRA Dd 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 KRA dd are associated (or correlated) with AD Plastik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AD Plastik dd has no effect on the direction of KRA Dd i.e., KRA Dd and AD Plastik go up and down completely randomly.
Pair Corralation between KRA Dd and AD Plastik
Assuming the 90 days trading horizon KRA dd is expected to under-perform the AD Plastik. In addition to that, KRA Dd is 1.33 times more volatile than AD Plastik dd. It trades about -0.29 of its total potential returns per unit of risk. AD Plastik dd is currently generating about -0.08 per unit of volatility. If you would invest 950.00 in AD Plastik dd on October 20, 2024 and sell it today you would lose (30.00) from holding AD Plastik dd or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 37.5% |
| Values | Daily Returns |
KRA dd vs. AD Plastik dd
Performance |
| Timeline |
| KRA dd |
| AD Plastik dd |
KRA Dd and AD Plastik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KRA Dd and AD Plastik
The main advantage of trading using opposite KRA Dd and AD Plastik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KRA Dd position performs unexpectedly, AD Plastik 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 AD Plastik will offset losses from the drop in AD Plastik's long position.| KRA Dd vs. AD Plastik dd | KRA Dd vs. Hrvatska Postanska Banka | KRA Dd vs. Dalekovod dd | KRA Dd vs. Podravka Prehrambena Industrija |
| AD Plastik vs. Dalekovod dd | AD Plastik vs. Institut IGH dd | AD Plastik vs. Jadroplov dd | AD Plastik vs. Zagrebacka Banka dd |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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