Correlation Between PMPG Polskie and Centrum Finansowe
Can any of the company-specific risk be diversified away by investing in both PMPG Polskie and Centrum Finansowe 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 PMPG Polskie and Centrum Finansowe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PMPG Polskie Media and Centrum Finansowe Banku, you can compare the effects of market volatilities on PMPG Polskie and Centrum Finansowe 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 PMPG Polskie with a short position of Centrum Finansowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of PMPG Polskie and Centrum Finansowe.
Diversification Opportunities for PMPG Polskie and Centrum Finansowe
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PMPG and Centrum is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding PMPG Polskie Media and Centrum Finansowe Banku in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centrum Finansowe Banku and PMPG Polskie 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 PMPG Polskie Media are associated (or correlated) with Centrum Finansowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centrum Finansowe Banku has no effect on the direction of PMPG Polskie i.e., PMPG Polskie and Centrum Finansowe go up and down completely randomly.
Pair Corralation between PMPG Polskie and Centrum Finansowe
Assuming the 90 days trading horizon PMPG Polskie Media is expected to under-perform the Centrum Finansowe. In addition to that, PMPG Polskie is 1.84 times more volatile than Centrum Finansowe Banku. It trades about -0.12 of its total potential returns per unit of risk. Centrum Finansowe Banku is currently generating about 0.1 per unit of volatility. If you would invest 435.00 in Centrum Finansowe Banku on September 3, 2024 and sell it today you would earn a total of 145.00 from holding Centrum Finansowe Banku or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
PMPG Polskie Media vs. Centrum Finansowe Banku
Performance |
| Timeline |
| PMPG Polskie Media |
| Centrum Finansowe Banku |
PMPG Polskie and Centrum Finansowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PMPG Polskie and Centrum Finansowe
The main advantage of trading using opposite PMPG Polskie and Centrum Finansowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PMPG Polskie position performs unexpectedly, Centrum Finansowe 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 Centrum Finansowe will offset losses from the drop in Centrum Finansowe's long position.| PMPG Polskie vs. Asseco Business Solutions | PMPG Polskie vs. Kogeneracja SA | PMPG Polskie vs. Asseco South Eastern | PMPG Polskie vs. Movie Games SA |
| Centrum Finansowe vs. Carlson Investments SA | Centrum Finansowe vs. Asseco Business Solutions | Centrum Finansowe vs. Kogeneracja SA | Centrum Finansowe vs. Asseco South Eastern |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |