Correlation Between Lubelski Wegiel and Genomtec
Can any of the company-specific risk be diversified away by investing in both Lubelski Wegiel and Genomtec 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 Lubelski Wegiel and Genomtec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lubelski Wegiel Bogdanka and Genomtec SA, you can compare the effects of market volatilities on Lubelski Wegiel and Genomtec 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 Lubelski Wegiel with a short position of Genomtec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lubelski Wegiel and Genomtec.
Diversification Opportunities for Lubelski Wegiel and Genomtec
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lubelski and Genomtec is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Lubelski Wegiel Bogdanka and Genomtec SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genomtec SA and Lubelski Wegiel 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 Lubelski Wegiel Bogdanka are associated (or correlated) with Genomtec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genomtec SA has no effect on the direction of Lubelski Wegiel i.e., Lubelski Wegiel and Genomtec go up and down completely randomly.
Pair Corralation between Lubelski Wegiel and Genomtec
Assuming the 90 days trading horizon Lubelski Wegiel Bogdanka is expected to generate 0.94 times more return on investment than Genomtec. However, Lubelski Wegiel Bogdanka is 1.06 times less risky than Genomtec. It trades about 0.14 of its potential returns per unit of risk. Genomtec SA is currently generating about -0.33 per unit of risk. If you would invest 2,140 in Lubelski Wegiel Bogdanka on September 5, 2024 and sell it today you would earn a total of 150.00 from holding Lubelski Wegiel Bogdanka or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lubelski Wegiel Bogdanka vs. Genomtec SA
Performance |
| Timeline |
| Lubelski Wegiel Bogdanka |
| Genomtec SA |
Lubelski Wegiel and Genomtec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lubelski Wegiel and Genomtec
The main advantage of trading using opposite Lubelski Wegiel and Genomtec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lubelski Wegiel position performs unexpectedly, Genomtec 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 Genomtec will offset losses from the drop in Genomtec's long position.| Lubelski Wegiel vs. Clean Carbon Energy | Lubelski Wegiel vs. Vercom SA | Lubelski Wegiel vs. CFI Holding SA | Lubelski Wegiel vs. Gobarto SA |
| Genomtec vs. Banco Santander SA | Genomtec vs. UniCredit SpA | Genomtec vs. CEZ as | Genomtec 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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