Correlation Between Bank Polska and Ailleron
Can any of the company-specific risk be diversified away by investing in both Bank Polska and Ailleron 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 Ailleron 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 Ailleron SA, you can compare the effects of market volatilities on Bank Polska and Ailleron 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 Ailleron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Polska and Ailleron.
Diversification Opportunities for Bank Polska and Ailleron
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Ailleron is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bank Polska Kasa and Ailleron SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ailleron 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 Ailleron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ailleron SA has no effect on the direction of Bank Polska i.e., Bank Polska and Ailleron go up and down completely randomly.
Pair Corralation between Bank Polska and Ailleron
Assuming the 90 days trading horizon Bank Polska is expected to generate 1.49 times less return on investment than Ailleron. In addition to that, Bank Polska is 1.0 times more volatile than Ailleron SA. It trades about 0.03 of its total potential returns per unit of risk. Ailleron SA is currently generating about 0.04 per unit of volatility. If you would invest 1,870 in Ailleron SA on September 4, 2024 and sell it today you would earn a total of 280.00 from holding Ailleron SA or generate 14.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Polska Kasa vs. Ailleron SA
Performance |
| Timeline |
| Bank Polska Kasa |
| Ailleron SA |
Bank Polska and Ailleron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Polska and Ailleron
The main advantage of trading using opposite Bank Polska and Ailleron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Polska position performs unexpectedly, Ailleron 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 Ailleron will offset losses from the drop in Ailleron's long position.| Bank Polska vs. MCI Management SA | Bank Polska vs. Bank Millennium SA | Bank Polska vs. Quantum Software SA | Bank Polska vs. Mercator Medical SA |
| Ailleron vs. SOFTWARE MANSION SPOLKA | Ailleron vs. LSI Software SA | Ailleron vs. BNP Paribas Bank | Ailleron vs. Marie Brizard Wine |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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