Correlation Between Notoria and Grupa KTY
Can any of the company-specific risk be diversified away by investing in both Notoria and Grupa KTY 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 Notoria and Grupa KTY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Notoria and Grupa KTY SA, you can compare the effects of market volatilities on Notoria and Grupa KTY 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 Notoria with a short position of Grupa KTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Notoria and Grupa KTY.
Diversification Opportunities for Notoria and Grupa KTY
Excellent diversification
The 3 months correlation between Notoria and Grupa is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Notoria and Grupa KTY SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupa KTY SA and Notoria 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 Notoria are associated (or correlated) with Grupa KTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupa KTY SA has no effect on the direction of Notoria i.e., Notoria and Grupa KTY go up and down completely randomly.
Pair Corralation between Notoria and Grupa KTY
Assuming the 90 days trading horizon Notoria is expected to generate 0.49 times more return on investment than Grupa KTY. However, Notoria is 2.06 times less risky than Grupa KTY. It trades about 0.41 of its potential returns per unit of risk. Grupa KTY SA is currently generating about 0.09 per unit of risk. If you would invest 790.00 in Notoria on September 13, 2024 and sell it today you would earn a total of 30.00 from holding Notoria or generate 3.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
Notoria vs. Grupa KTY SA
Performance |
| Timeline |
| Notoria |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Grupa KTY SA |
Notoria and Grupa KTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Notoria and Grupa KTY
The main advantage of trading using opposite Notoria and Grupa KTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Notoria position performs unexpectedly, Grupa KTY 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 Grupa KTY will offset losses from the drop in Grupa KTY's long position.| Notoria vs. Asseco South Eastern | Notoria vs. Vercom SA | Notoria vs. CFI Holding SA | Notoria vs. Gobarto SA |
| Grupa KTY vs. Noble Financials SA | Grupa KTY vs. Quantum Software SA | Grupa KTY vs. Medicofarma Biotech SA | Grupa KTY vs. Creotech Instruments 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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