Correlation Between Bank Polska and Artifex Mundi
Can any of the company-specific risk be diversified away by investing in both Bank Polska and Artifex Mundi 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 Artifex Mundi 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 Artifex Mundi SA, you can compare the effects of market volatilities on Bank Polska and Artifex Mundi 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 Artifex Mundi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Polska and Artifex Mundi.
Diversification Opportunities for Bank Polska and Artifex Mundi
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Artifex is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bank Polska Kasa and Artifex Mundi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artifex Mundi 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 Artifex Mundi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artifex Mundi SA has no effect on the direction of Bank Polska i.e., Bank Polska and Artifex Mundi go up and down completely randomly.
Pair Corralation between Bank Polska and Artifex Mundi
Assuming the 90 days trading horizon Bank Polska Kasa is expected to generate 0.59 times more return on investment than Artifex Mundi. However, Bank Polska Kasa is 1.68 times less risky than Artifex Mundi. It trades about -0.06 of its potential returns per unit of risk. Artifex Mundi SA is currently generating about -0.32 per unit of risk. If you would invest 14,480 in Bank Polska Kasa on August 26, 2024 and sell it today you would lose (545.00) from holding Bank Polska Kasa or give up 3.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Polska Kasa vs. Artifex Mundi SA
Performance |
| Timeline |
| Bank Polska Kasa |
| Artifex Mundi SA |
Bank Polska and Artifex Mundi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Polska and Artifex Mundi
The main advantage of trading using opposite Bank Polska and Artifex Mundi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Polska position performs unexpectedly, Artifex Mundi 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 Artifex Mundi will offset losses from the drop in Artifex Mundi's long position.| Bank Polska vs. Medicalg | Bank Polska vs. SOFTWARE MANSION SPOLKA | Bank Polska vs. PZ Cormay SA | Bank Polska vs. Marie Brizard Wine |
| Artifex Mundi vs. Enter Air SA | Artifex Mundi vs. Bank Millennium SA | Artifex Mundi vs. Noble Financials SA | Artifex Mundi vs. Echo Investment 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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