Correlation Between KRA Dd and Hrvatska Postanska
Can any of the company-specific risk be diversified away by investing in both KRA Dd and Hrvatska Postanska 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 Hrvatska Postanska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KRA dd and Hrvatska Postanska Banka, you can compare the effects of market volatilities on KRA Dd and Hrvatska Postanska 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 Hrvatska Postanska. Check out your portfolio center. Please also check ongoing floating volatility patterns of KRA Dd and Hrvatska Postanska.
Diversification Opportunities for KRA Dd and Hrvatska Postanska
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KRA and Hrvatska is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding KRA dd and Hrvatska Postanska Banka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hrvatska Postanska Banka 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 Hrvatska Postanska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hrvatska Postanska Banka has no effect on the direction of KRA Dd i.e., KRA Dd and Hrvatska Postanska go up and down completely randomly.
Pair Corralation between KRA Dd and Hrvatska Postanska
Assuming the 90 days trading horizon KRA dd is expected to generate 2.29 times more return on investment than Hrvatska Postanska. However, KRA Dd is 2.29 times more volatile than Hrvatska Postanska Banka. It trades about 0.07 of its potential returns per unit of risk. Hrvatska Postanska Banka is currently generating about 0.15 per unit of risk. If you would invest 8,224 in KRA dd on September 14, 2024 and sell it today you would earn a total of 3,576 from holding KRA dd or generate 43.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 37.59% |
| Values | Daily Returns |
KRA dd vs. Hrvatska Postanska Banka
Performance |
| Timeline |
| KRA dd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Hrvatska Postanska Banka |
KRA Dd and Hrvatska Postanska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KRA Dd and Hrvatska Postanska
The main advantage of trading using opposite KRA Dd and Hrvatska Postanska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KRA Dd position performs unexpectedly, Hrvatska Postanska 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 Hrvatska Postanska will offset losses from the drop in Hrvatska Postanska's long position.| KRA Dd vs. Dalekovod dd | KRA Dd vs. Institut IGH dd | KRA Dd vs. Jadroplov dd | KRA Dd vs. Zagrebacka Banka dd |
| Hrvatska Postanska vs. Zagrebacka Banka dd | Hrvatska Postanska vs. AD Plastik dd | Hrvatska Postanska vs. Dalekovod dd | Hrvatska Postanska vs. Podravka Prehrambena Industrija |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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