Correlation Between Polski Koncern and Artifex Mundi
Can any of the company-specific risk be diversified away by investing in both Polski Koncern and Artifex Mundi 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 Polski Koncern and Artifex Mundi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polski Koncern Naftowy and Artifex Mundi SA, you can compare the effects of market volatilities on Polski Koncern and Artifex Mundi 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 Polski Koncern with a short position of Artifex Mundi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and Artifex Mundi.
Diversification Opportunities for Polski Koncern and Artifex Mundi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Polski and Artifex is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy and Artifex Mundi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artifex Mundi SA and Polski Koncern 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 Polski Koncern Naftowy are associated (or correlated) with Artifex Mundi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artifex Mundi SA has no effect on the direction of Polski Koncern i.e., Polski Koncern and Artifex Mundi go up and down completely randomly.
Pair Corralation between Polski Koncern and Artifex Mundi
Assuming the 90 days trading horizon Polski Koncern Naftowy is expected to generate 0.45 times more return on investment than Artifex Mundi. However, Polski Koncern Naftowy is 2.23 times less risky than Artifex Mundi. It trades about -0.08 of its potential returns per unit of risk. Artifex Mundi SA is currently generating about -0.32 per unit of risk. If you would invest 5,382 in Polski Koncern Naftowy on August 26, 2024 and sell it today you would lose (199.00) from holding Polski Koncern Naftowy or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polski Koncern Naftowy vs. Artifex Mundi SA
Performance |
| Timeline |
| Polski Koncern Naftowy |
| Artifex Mundi SA |
Polski Koncern and Artifex Mundi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and Artifex Mundi
The main advantage of trading using opposite Polski Koncern and Artifex Mundi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern position performs unexpectedly, Artifex Mundi 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 Artifex Mundi will offset losses from the drop in Artifex Mundi's long position.| Polski Koncern vs. Marie Brizard Wine | Polski Koncern vs. Centrum Finansowe Banku | Polski Koncern vs. Noble Financials SA | Polski Koncern vs. mBank SA |
| Artifex Mundi vs. Pyramid Games SA | Artifex Mundi vs. True Games Syndicate | Artifex Mundi vs. GreenX Metals | Artifex Mundi vs. Medicalg |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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