Correlation Between Bank Polska and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both Bank Polska and Marie Brizard 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 Marie Brizard 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 Marie Brizard Wine, you can compare the effects of market volatilities on Bank Polska and Marie Brizard 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 Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Polska and Marie Brizard.
Diversification Opportunities for Bank Polska and Marie Brizard
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Marie is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bank Polska Kasa and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine 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 Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of Bank Polska i.e., Bank Polska and Marie Brizard go up and down completely randomly.
Pair Corralation between Bank Polska and Marie Brizard
Assuming the 90 days trading horizon Bank Polska Kasa is expected to generate 0.75 times more return on investment than Marie Brizard. However, Bank Polska Kasa is 1.33 times less risky than Marie Brizard. It trades about 0.4 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about -0.25 per unit of risk. If you would invest 14,385 in Bank Polska Kasa on November 5, 2024 and sell it today you would earn a total of 1,650 from holding Bank Polska Kasa or generate 11.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Polska Kasa vs. Marie Brizard Wine
Performance |
| Timeline |
| Bank Polska Kasa |
| Marie Brizard Wine |
Bank Polska and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Polska and Marie Brizard
The main advantage of trading using opposite Bank Polska and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Polska position performs unexpectedly, Marie Brizard 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 Marie Brizard will offset losses from the drop in Marie Brizard's long position.| Bank Polska vs. Echo Investment SA | Bank Polska vs. All In Games | Bank Polska vs. Pyramid Games SA | Bank Polska vs. New Tech Venture |
| Marie Brizard vs. Banco Santander SA | Marie Brizard vs. UniCredit SpA | Marie Brizard vs. CEZ as | Marie Brizard 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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