Correlation Between PCF Group and Lubelski Wegiel
Can any of the company-specific risk be diversified away by investing in both PCF Group and Lubelski Wegiel 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 PCF Group and Lubelski Wegiel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PCF Group SA and Lubelski Wegiel Bogdanka, you can compare the effects of market volatilities on PCF Group and Lubelski Wegiel 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 PCF Group with a short position of Lubelski Wegiel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PCF Group and Lubelski Wegiel.
Diversification Opportunities for PCF Group and Lubelski Wegiel
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PCF and Lubelski is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding PCF Group SA and Lubelski Wegiel Bogdanka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lubelski Wegiel Bogdanka and PCF Group 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 PCF Group SA are associated (or correlated) with Lubelski Wegiel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lubelski Wegiel Bogdanka has no effect on the direction of PCF Group i.e., PCF Group and Lubelski Wegiel go up and down completely randomly.
Pair Corralation between PCF Group and Lubelski Wegiel
Assuming the 90 days trading horizon PCF Group SA is expected to under-perform the Lubelski Wegiel. In addition to that, PCF Group is 2.32 times more volatile than Lubelski Wegiel Bogdanka. It trades about -0.16 of its total potential returns per unit of risk. Lubelski Wegiel Bogdanka is currently generating about 0.14 per unit of volatility. If you would invest 2,140 in Lubelski Wegiel Bogdanka on September 5, 2024 and sell it today you would earn a total of 150.00 from holding Lubelski Wegiel Bogdanka or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PCF Group SA vs. Lubelski Wegiel Bogdanka
Performance |
| Timeline |
| PCF Group SA |
| Lubelski Wegiel Bogdanka |
PCF Group and Lubelski Wegiel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PCF Group and Lubelski Wegiel
The main advantage of trading using opposite PCF Group and Lubelski Wegiel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PCF Group position performs unexpectedly, Lubelski Wegiel 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 Lubelski Wegiel will offset losses from the drop in Lubelski Wegiel's long position.| PCF Group vs. Banco Santander SA | PCF Group vs. UniCredit SpA | PCF Group vs. CEZ as | PCF Group vs. Polski Koncern Naftowy |
| Lubelski Wegiel vs. Clean Carbon Energy | Lubelski Wegiel vs. Vercom SA | Lubelski Wegiel vs. CFI Holding SA | Lubelski Wegiel vs. Gobarto 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |