Correlation Between Kruk SA and Amica SA
Can any of the company-specific risk be diversified away by investing in both Kruk SA and Amica 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 Amica 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 Amica SA, you can compare the effects of market volatilities on Kruk SA and Amica 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 Amica SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kruk SA and Amica SA.
Diversification Opportunities for Kruk SA and Amica SA
Very good diversification
The 3 months correlation between Kruk and Amica is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kruk SA and Amica SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amica 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 Amica SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amica SA has no effect on the direction of Kruk SA i.e., Kruk SA and Amica SA go up and down completely randomly.
Pair Corralation between Kruk SA and Amica SA
Assuming the 90 days trading horizon Kruk SA is expected to generate 0.74 times more return on investment than Amica SA. However, Kruk SA is 1.36 times less risky than Amica SA. It trades about -0.03 of its potential returns per unit of risk. Amica SA is currently generating about -0.15 per unit of risk. If you would invest 43,580 in Kruk SA on September 12, 2024 and sell it today you would lose (440.00) from holding Kruk SA or give up 1.01% 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. Amica SA
Performance |
| Timeline |
| Kruk SA |
| Amica SA |
Kruk SA and Amica SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kruk SA and Amica SA
The main advantage of trading using opposite Kruk SA and Amica SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kruk SA position performs unexpectedly, Amica 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 Amica SA will offset losses from the drop in Amica SA's long position.| Kruk SA vs. Bank Millennium SA | Kruk SA vs. Centrum Finansowe Banku | Kruk SA vs. UniCredit SpA | Kruk SA vs. PZ Cormay SA |
| Amica SA vs. Quantum Software SA | Amica SA vs. Monnari Trade SA | Amica SA vs. Immobile | Amica SA vs. GreenX Metals |
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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