Correlation Between PMPG Polskie and Creotech Instruments
Can any of the company-specific risk be diversified away by investing in both PMPG Polskie and Creotech Instruments 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 Creotech Instruments 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 Creotech Instruments SA, you can compare the effects of market volatilities on PMPG Polskie and Creotech Instruments 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 Creotech Instruments. Check out your portfolio center. Please also check ongoing floating volatility patterns of PMPG Polskie and Creotech Instruments.
Diversification Opportunities for PMPG Polskie and Creotech Instruments
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PMPG and Creotech is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding PMPG Polskie Media and Creotech Instruments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creotech Instruments 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 Creotech Instruments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creotech Instruments has no effect on the direction of PMPG Polskie i.e., PMPG Polskie and Creotech Instruments go up and down completely randomly.
Pair Corralation between PMPG Polskie and Creotech Instruments
Assuming the 90 days trading horizon PMPG Polskie Media is expected to under-perform the Creotech Instruments. In addition to that, PMPG Polskie is 2.82 times more volatile than Creotech Instruments SA. It trades about -0.32 of its total potential returns per unit of risk. Creotech Instruments SA is currently generating about -0.09 per unit of volatility. If you would invest 15,700 in Creotech Instruments SA on September 12, 2024 and sell it today you would lose (500.00) from holding Creotech Instruments SA or give up 3.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PMPG Polskie Media vs. Creotech Instruments SA
Performance |
| Timeline |
| PMPG Polskie Media |
| Creotech Instruments |
PMPG Polskie and Creotech Instruments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PMPG Polskie and Creotech Instruments
The main advantage of trading using opposite PMPG Polskie and Creotech Instruments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PMPG Polskie position performs unexpectedly, Creotech Instruments 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 Creotech Instruments will offset losses from the drop in Creotech Instruments' long position.| PMPG Polskie vs. PZ Cormay SA | PMPG Polskie vs. Echo Investment SA | PMPG Polskie vs. Quantum Software SA | PMPG Polskie vs. Gaming Factory SA |
| Creotech Instruments vs. Action SA | Creotech Instruments vs. Asseco Business Solutions | Creotech Instruments vs. Detalion Games SA | Creotech Instruments 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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