Correlation Between INSURANCE AUST and Komercní Banka
Can any of the company-specific risk be diversified away by investing in both INSURANCE AUST and Komercní Banka 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 INSURANCE AUST and Komercní Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INSURANCE AUST GRP and Komercn banka as, you can compare the effects of market volatilities on INSURANCE AUST and Komercní Banka 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 INSURANCE AUST with a short position of Komercní Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of INSURANCE AUST and Komercní Banka.
Diversification Opportunities for INSURANCE AUST and Komercní Banka
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INSURANCE and Komercní is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding INSURANCE AUST GRP and Komercn banka as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercn banka as and INSURANCE AUST 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 INSURANCE AUST GRP are associated (or correlated) with Komercní Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercn banka as has no effect on the direction of INSURANCE AUST i.e., INSURANCE AUST and Komercní Banka go up and down completely randomly.
Pair Corralation between INSURANCE AUST and Komercní Banka
Assuming the 90 days trading horizon INSURANCE AUST GRP is expected to generate 0.99 times more return on investment than Komercní Banka. However, INSURANCE AUST GRP is 1.01 times less risky than Komercní Banka. It trades about 0.3 of its potential returns per unit of risk. Komercn banka as is currently generating about 0.22 per unit of risk. If you would invest 500.00 in INSURANCE AUST GRP on November 3, 2024 and sell it today you would earn a total of 45.00 from holding INSURANCE AUST GRP or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INSURANCE AUST GRP vs. Komercn banka as
Performance |
| Timeline |
| INSURANCE AUST GRP |
| Komercn banka as |
INSURANCE AUST and Komercní Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INSURANCE AUST and Komercní Banka
The main advantage of trading using opposite INSURANCE AUST and Komercní Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INSURANCE AUST position performs unexpectedly, Komercní Banka 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 Komercní Banka will offset losses from the drop in Komercní Banka's long position.| INSURANCE AUST vs. Nucletron Electronic Aktiengesellschaft | INSURANCE AUST vs. Meiko Electronics Co | INSURANCE AUST vs. Universal Entertainment | INSURANCE AUST vs. GigaMedia |
| Komercní Banka vs. Indutrade AB | Komercní Banka vs. MARKET VECTR RETAIL | Komercní Banka vs. CARSALESCOM | Komercní Banka vs. National Retail Properties |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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