Correlation Between New Tech and Polski Koncern
Can any of the company-specific risk be diversified away by investing in both New Tech and Polski Koncern 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 New Tech and Polski Koncern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Tech Venture and Polski Koncern Naftowy, you can compare the effects of market volatilities on New Tech and Polski Koncern 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 New Tech with a short position of Polski Koncern. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Tech and Polski Koncern.
Diversification Opportunities for New Tech and Polski Koncern
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between New and Polski is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding New Tech Venture and Polski Koncern Naftowy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polski Koncern Naftowy and New Tech 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 New Tech Venture are associated (or correlated) with Polski Koncern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polski Koncern Naftowy has no effect on the direction of New Tech i.e., New Tech and Polski Koncern go up and down completely randomly.
Pair Corralation between New Tech and Polski Koncern
Assuming the 90 days trading horizon New Tech Venture is expected to generate 3.2 times more return on investment than Polski Koncern. However, New Tech is 3.2 times more volatile than Polski Koncern Naftowy. It trades about 0.01 of its potential returns per unit of risk. Polski Koncern Naftowy is currently generating about -0.06 per unit of risk. If you would invest 14.00 in New Tech Venture on September 2, 2024 and sell it today you would lose (1.00) from holding New Tech Venture or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 68.5% |
| Values | Daily Returns |
New Tech Venture vs. Polski Koncern Naftowy
Performance |
| Timeline |
| New Tech Venture |
| Polski Koncern Naftowy |
New Tech and Polski Koncern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Tech and Polski Koncern
The main advantage of trading using opposite New Tech and Polski Koncern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Tech position performs unexpectedly, Polski Koncern 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 Polski Koncern will offset losses from the drop in Polski Koncern's long position.| New Tech vs. Asseco Business Solutions | New Tech vs. Detalion Games SA | New Tech vs. Asseco South Eastern | New Tech vs. CFI Holding SA |
| Polski Koncern vs. Echo Investment SA | Polski Koncern vs. Esotiq Henderson SA | Polski Koncern vs. Asseco South Eastern | Polski Koncern vs. Vercom 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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