Correlation Between Bank Polska and Robs Group
Can any of the company-specific risk be diversified away by investing in both Bank Polska and Robs Group 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 Robs Group 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 Robs Group Logistic, you can compare the effects of market volatilities on Bank Polska and Robs Group 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 Robs Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Polska and Robs Group.
Diversification Opportunities for Bank Polska and Robs Group
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Robs is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bank Polska Kasa and Robs Group Logistic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robs Group Logistic 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 Robs Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robs Group Logistic has no effect on the direction of Bank Polska i.e., Bank Polska and Robs Group go up and down completely randomly.
Pair Corralation between Bank Polska and Robs Group
Assuming the 90 days trading horizon Bank Polska Kasa is expected to under-perform the Robs Group. But the stock apears to be less risky and, when comparing its historical volatility, Bank Polska Kasa is 6.02 times less risky than Robs Group. The stock trades about -0.03 of its potential returns per unit of risk. The Robs Group Logistic is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 52.00 in Robs Group Logistic on August 31, 2024 and sell it today you would earn a total of 41.00 from holding Robs Group Logistic or generate 78.85% 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. Robs Group Logistic
Performance |
| Timeline |
| Bank Polska Kasa |
| Robs Group Logistic |
Bank Polska and Robs Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Polska and Robs Group
The main advantage of trading using opposite Bank Polska and Robs Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Polska position performs unexpectedly, Robs Group 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 Robs Group will offset losses from the drop in Robs Group's long position.| Bank Polska vs. UniCredit SpA | Bank Polska vs. Santander Bank Polska | Bank Polska vs. Bank Handlowy w | Bank Polska vs. BNP Paribas Bank |
| Robs Group vs. Creotech Instruments SA | Robs Group vs. Intersport Polska SA | Robs Group vs. Centrum Finansowe Banku | Robs Group vs. mBank 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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