Correlation Between Kruk SA and AC SA
Can any of the company-specific risk be diversified away by investing in both Kruk SA and AC SA 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 Kruk SA and AC SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kruk SA and AC SA, you can compare the effects of market volatilities on Kruk SA and AC SA 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 Kruk SA with a short position of AC SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kruk SA and AC SA.
Diversification Opportunities for Kruk SA and AC SA
Very good diversification
The 3 months correlation between Kruk and ACG is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kruk SA and AC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AC SA and Kruk SA 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 Kruk SA are associated (or correlated) with AC SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AC SA has no effect on the direction of Kruk SA i.e., Kruk SA and AC SA go up and down completely randomly.
Pair Corralation between Kruk SA and AC SA
Assuming the 90 days trading horizon Kruk SA is expected to generate 1.06 times more return on investment than AC SA. However, Kruk SA is 1.06 times more volatile than AC SA. It trades about -0.03 of its potential returns per unit of risk. AC SA is currently generating about -0.04 per unit of risk. If you would invest 45,440 in Kruk SA on September 1, 2024 and sell it today you would lose (3,140) from holding Kruk SA or give up 6.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kruk SA vs. AC SA
Performance |
| Timeline |
| Kruk SA |
| AC SA |
Kruk SA and AC SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kruk SA and AC SA
The main advantage of trading using opposite Kruk SA and AC SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kruk SA position performs unexpectedly, AC SA 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 AC SA will offset losses from the drop in AC SA's long position.| Kruk SA vs. Asseco Business Solutions | Kruk SA vs. Detalion Games SA | Kruk SA vs. Asseco South Eastern | Kruk SA vs. CFI Holding SA |
| AC SA vs. Quantum Software SA | AC SA vs. Intersport Polska SA | AC SA vs. GreenX Metals | AC SA vs. Marie Brizard Wine |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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