Correlation Between Labo Print and CEZ As
Can any of the company-specific risk be diversified away by investing in both Labo Print and CEZ As 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 Labo Print and CEZ As into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Labo Print SA and CEZ as, you can compare the effects of market volatilities on Labo Print and CEZ As 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 Labo Print with a short position of CEZ As. Check out your portfolio center. Please also check ongoing floating volatility patterns of Labo Print and CEZ As.
Diversification Opportunities for Labo Print and CEZ As
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Labo and CEZ is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Labo Print SA and CEZ as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEZ as and Labo Print 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 Labo Print SA are associated (or correlated) with CEZ As. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEZ as has no effect on the direction of Labo Print i.e., Labo Print and CEZ As go up and down completely randomly.
Pair Corralation between Labo Print and CEZ As
Assuming the 90 days trading horizon Labo Print SA is expected to under-perform the CEZ As. But the stock apears to be less risky and, when comparing its historical volatility, Labo Print SA is 2.0 times less risky than CEZ As. The stock trades about -0.14 of its potential returns per unit of risk. The CEZ as is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 15,680 in CEZ as on September 18, 2024 and sell it today you would earn a total of 580.00 from holding CEZ as or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Labo Print SA vs. CEZ as
Performance |
| Timeline |
| Labo Print SA |
| CEZ as |
Labo Print and CEZ As Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Labo Print and CEZ As
The main advantage of trading using opposite Labo Print and CEZ As positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Labo Print position performs unexpectedly, CEZ As 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 CEZ As will offset losses from the drop in CEZ As' long position.| Labo Print vs. Drago entertainment SA | Labo Print vs. Monnari Trade SA | Labo Print vs. Immobile | Labo Print vs. PLAYWAY SA |
| CEZ As vs. Asseco Business Solutions | CEZ As vs. Asseco South Eastern | CEZ As vs. HM Inwest SA | CEZ As vs. Movie Games SA |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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