Correlation Between Bank Polska and Atal SA
Can any of the company-specific risk be diversified away by investing in both Bank Polska and Atal SA 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 Bank Polska and Atal SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Polska Kasa and Atal SA, you can compare the effects of market volatilities on Bank Polska and Atal SA 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 Bank Polska with a short position of Atal SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Polska and Atal SA.
Diversification Opportunities for Bank Polska and Atal SA
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Atal is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bank Polska Kasa and Atal SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atal SA and Bank Polska 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 Bank Polska Kasa are associated (or correlated) with Atal SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atal SA has no effect on the direction of Bank Polska i.e., Bank Polska and Atal SA go up and down completely randomly.
Pair Corralation between Bank Polska and Atal SA
Assuming the 90 days trading horizon Bank Polska Kasa is expected to under-perform the Atal SA. In addition to that, Bank Polska is 2.18 times more volatile than Atal SA. It trades about -0.11 of its total potential returns per unit of risk. Atal SA is currently generating about 0.13 per unit of volatility. If you would invest 5,280 in Atal SA on August 30, 2024 and sell it today you would earn a total of 150.00 from holding Atal SA or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Polska Kasa vs. Atal SA
Performance |
| Timeline |
| Bank Polska Kasa |
| Atal SA |
Bank Polska and Atal SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Polska and Atal SA
The main advantage of trading using opposite Bank Polska and Atal SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Polska position performs unexpectedly, Atal SA 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 Atal SA will offset losses from the drop in Atal SA's long position.| Bank Polska vs. M Food SA | Bank Polska vs. Cloud Technologies SA | Bank Polska vs. Biztech Konsulting SA | Bank Polska vs. Quantum Software SA |
| Atal SA vs. Inter Cars SA | Atal SA vs. Saule Technologies SA | Atal SA vs. LSI Software SA | Atal SA 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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