Correlation Between Logintrade and CEZ As
Can any of the company-specific risk be diversified away by investing in both Logintrade 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 Logintrade and CEZ As into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logintrade SA and CEZ as, you can compare the effects of market volatilities on Logintrade 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 Logintrade with a short position of CEZ As. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logintrade and CEZ As.
Diversification Opportunities for Logintrade and CEZ As
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Logintrade and CEZ is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Logintrade SA and CEZ as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEZ as and Logintrade 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 Logintrade 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 Logintrade i.e., Logintrade and CEZ As go up and down completely randomly.
Pair Corralation between Logintrade and CEZ As
Assuming the 90 days trading horizon Logintrade SA is expected to generate 2.91 times more return on investment than CEZ As. However, Logintrade is 2.91 times more volatile than CEZ as. It trades about 0.07 of its potential returns per unit of risk. CEZ as is currently generating about -0.01 per unit of risk. If you would invest 193.00 in Logintrade SA on August 29, 2024 and sell it today you would earn a total of 155.00 from holding Logintrade SA or generate 80.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 74.05% |
| Values | Daily Returns |
Logintrade SA vs. CEZ as
Performance |
| Timeline |
| Logintrade SA |
| CEZ as |
Logintrade and CEZ As Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logintrade and CEZ As
The main advantage of trading using opposite Logintrade and CEZ As positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logintrade 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.| Logintrade vs. Banco Santander SA | Logintrade vs. UniCredit SpA | Logintrade vs. CEZ as | Logintrade vs. Polski Koncern Naftowy |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |