Correlation Between Polski Koncern and Astarta Holding
Can any of the company-specific risk be diversified away by investing in both Polski Koncern and Astarta Holding 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 Astarta Holding 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 Astarta Holding NV, you can compare the effects of market volatilities on Polski Koncern and Astarta Holding 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 Astarta Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and Astarta Holding.
Diversification Opportunities for Polski Koncern and Astarta Holding
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Polski and Astarta is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy and Astarta Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astarta Holding NV 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 Astarta Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astarta Holding NV has no effect on the direction of Polski Koncern i.e., Polski Koncern and Astarta Holding go up and down completely randomly.
Pair Corralation between Polski Koncern and Astarta Holding
Assuming the 90 days trading horizon Polski Koncern Naftowy is expected to under-perform the Astarta Holding. But the stock apears to be less risky and, when comparing its historical volatility, Polski Koncern Naftowy is 1.24 times less risky than Astarta Holding. The stock trades about -0.01 of its potential returns per unit of risk. The Astarta Holding NV is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,982 in Astarta Holding NV on September 1, 2024 and sell it today you would earn a total of 768.00 from holding Astarta Holding NV or generate 25.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Polski Koncern Naftowy vs. Astarta Holding NV
Performance |
| Timeline |
| Polski Koncern Naftowy |
| Astarta Holding NV |
Polski Koncern and Astarta Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and Astarta Holding
The main advantage of trading using opposite Polski Koncern and Astarta Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern position performs unexpectedly, Astarta Holding 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 Astarta Holding will offset losses from the drop in Astarta Holding's long position.| Polski Koncern vs. UF Games SA | Polski Koncern vs. MW Trade SA | Polski Koncern vs. Centrum Finansowe Banku | Polski Koncern vs. X Trade Brokers |
| Astarta Holding vs. Cloud Technologies SA | Astarta Holding vs. ING Bank lski | Astarta Holding vs. Quantum Software SA | Astarta Holding 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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