Correlation Between Logintrade and Kogeneracja
Can any of the company-specific risk be diversified away by investing in both Logintrade and Kogeneracja 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 Kogeneracja into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logintrade SA and Kogeneracja SA, you can compare the effects of market volatilities on Logintrade and Kogeneracja 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 Kogeneracja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logintrade and Kogeneracja.
Diversification Opportunities for Logintrade and Kogeneracja
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Logintrade and Kogeneracja is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Logintrade SA and Kogeneracja SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kogeneracja SA 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 Kogeneracja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kogeneracja SA has no effect on the direction of Logintrade i.e., Logintrade and Kogeneracja go up and down completely randomly.
Pair Corralation between Logintrade and Kogeneracja
Assuming the 90 days trading horizon Logintrade is expected to generate 1.2 times less return on investment than Kogeneracja. In addition to that, Logintrade is 1.72 times more volatile than Kogeneracja SA. It trades about 0.03 of its total potential returns per unit of risk. Kogeneracja SA is currently generating about 0.06 per unit of volatility. If you would invest 3,590 in Kogeneracja SA on September 12, 2024 and sell it today you would earn a total of 1,740 from holding Kogeneracja SA or generate 48.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
Logintrade SA vs. Kogeneracja SA
Performance |
| Timeline |
| Logintrade SA |
| Kogeneracja SA |
Logintrade and Kogeneracja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logintrade and Kogeneracja
The main advantage of trading using opposite Logintrade and Kogeneracja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logintrade position performs unexpectedly, Kogeneracja 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 Kogeneracja will offset losses from the drop in Kogeneracja's long position.| Logintrade vs. Banco Santander SA | Logintrade vs. UniCredit SpA | Logintrade vs. CEZ as | Logintrade vs. Polski Koncern Naftowy |
| Kogeneracja vs. CI Games SA | Kogeneracja vs. Globe Trade Centre | Kogeneracja vs. Medicalg | Kogeneracja vs. Logintrade 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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