Correlation Between Poznanska Korporacja and Echo Investment
Can any of the company-specific risk be diversified away by investing in both Poznanska Korporacja and Echo Investment 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 Poznanska Korporacja and Echo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Poznanska Korporacja Budowlana and Echo Investment SA, you can compare the effects of market volatilities on Poznanska Korporacja and Echo Investment 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 Poznanska Korporacja with a short position of Echo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poznanska Korporacja and Echo Investment.
Diversification Opportunities for Poznanska Korporacja and Echo Investment
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Poznanska and Echo is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Poznanska Korporacja Budowlana and Echo Investment SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Echo Investment SA and Poznanska Korporacja 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 Poznanska Korporacja Budowlana are associated (or correlated) with Echo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Echo Investment SA has no effect on the direction of Poznanska Korporacja i.e., Poznanska Korporacja and Echo Investment go up and down completely randomly.
Pair Corralation between Poznanska Korporacja and Echo Investment
Assuming the 90 days trading horizon Poznanska Korporacja Budowlana is expected to under-perform the Echo Investment. In addition to that, Poznanska Korporacja is 1.35 times more volatile than Echo Investment SA. It trades about -0.12 of its total potential returns per unit of risk. Echo Investment SA is currently generating about 0.09 per unit of volatility. If you would invest 413.00 in Echo Investment SA on August 28, 2024 and sell it today you would earn a total of 39.00 from holding Echo Investment SA or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Poznanska Korporacja Budowlana vs. Echo Investment SA
Performance |
| Timeline |
| Poznanska Korporacja |
| Echo Investment SA |
Poznanska Korporacja and Echo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poznanska Korporacja and Echo Investment
The main advantage of trading using opposite Poznanska Korporacja and Echo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poznanska Korporacja position performs unexpectedly, Echo Investment 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 Echo Investment will offset losses from the drop in Echo Investment's long position.| Poznanska Korporacja vs. Asseco Business Solutions | Poznanska Korporacja vs. Detalion Games SA | Poznanska Korporacja vs. Asseco South Eastern | Poznanska Korporacja vs. Movie Games SA |
| Echo Investment vs. Ice Code Games | Echo Investment vs. UF Games SA | Echo Investment vs. Mlk Foods Public | Echo Investment vs. Cloud Technologies 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |