Correlation Between Bank Polska and Synektik
Can any of the company-specific risk be diversified away by investing in both Bank Polska and Synektik 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 Synektik 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 Synektik SA, you can compare the effects of market volatilities on Bank Polska and Synektik 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 Synektik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Polska and Synektik.
Diversification Opportunities for Bank Polska and Synektik
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Synektik is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bank Polska Kasa and Synektik SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synektik 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 Synektik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synektik SA has no effect on the direction of Bank Polska i.e., Bank Polska and Synektik go up and down completely randomly.
Pair Corralation between Bank Polska and Synektik
Assuming the 90 days trading horizon Bank Polska Kasa is expected to generate 1.42 times more return on investment than Synektik. However, Bank Polska is 1.42 times more volatile than Synektik SA. It trades about -0.05 of its potential returns per unit of risk. Synektik SA is currently generating about -0.18 per unit of risk. If you would invest 14,020 in Bank Polska Kasa on September 1, 2024 and sell it today you would lose (455.00) from holding Bank Polska Kasa or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bank Polska Kasa vs. Synektik SA
Performance |
| Timeline |
| Bank Polska Kasa |
| Synektik SA |
Bank Polska and Synektik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Polska and Synektik
The main advantage of trading using opposite Bank Polska and Synektik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Polska position performs unexpectedly, Synektik 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 Synektik will offset losses from the drop in Synektik's long position.| Bank Polska vs. New Tech Venture | Bank Polska vs. Skyline Investment SA | Bank Polska vs. Creotech Instruments SA | Bank Polska vs. Carlson Investments SA |
| Synektik vs. Centrum Finansowe Banku | Synektik vs. Investment Friends Capital | Synektik vs. Skyline Investment SA | Synektik vs. Movie Games 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |