Correlation Between Poznanska Korporacja and Road Studio
Can any of the company-specific risk be diversified away by investing in both Poznanska Korporacja and Road Studio 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 Road Studio 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 Road Studio SA, you can compare the effects of market volatilities on Poznanska Korporacja and Road Studio 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 Road Studio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poznanska Korporacja and Road Studio.
Diversification Opportunities for Poznanska Korporacja and Road Studio
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Poznanska and Road is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Poznanska Korporacja Budowlana and Road Studio SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Road Studio 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 Road Studio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Road Studio SA has no effect on the direction of Poznanska Korporacja i.e., Poznanska Korporacja and Road Studio go up and down completely randomly.
Pair Corralation between Poznanska Korporacja and Road Studio
Assuming the 90 days trading horizon Poznanska Korporacja Budowlana is expected to generate 0.48 times more return on investment than Road Studio. However, Poznanska Korporacja Budowlana is 2.08 times less risky than Road Studio. It trades about 0.03 of its potential returns per unit of risk. Road Studio SA is currently generating about -0.02 per unit of risk. If you would invest 1,489 in Poznanska Korporacja Budowlana on September 5, 2024 and sell it today you would earn a total of 391.00 from holding Poznanska Korporacja Budowlana or generate 26.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.58% |
| Values | Daily Returns |
Poznanska Korporacja Budowlana vs. Road Studio SA
Performance |
| Timeline |
| Poznanska Korporacja |
| Road Studio SA |
Poznanska Korporacja and Road Studio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poznanska Korporacja and Road Studio
The main advantage of trading using opposite Poznanska Korporacja and Road Studio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poznanska Korporacja position performs unexpectedly, Road Studio 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 Road Studio will offset losses from the drop in Road Studio's long position.| Poznanska Korporacja vs. Asseco Business Solutions | Poznanska Korporacja vs. Kogeneracja SA | Poznanska Korporacja vs. Asseco South Eastern | Poznanska Korporacja vs. Vercom SA |
| Road Studio vs. Banco Santander SA | Road Studio vs. UniCredit SpA | Road Studio vs. CEZ as | Road Studio 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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