Correlation Between Polski Koncern and Centrum Finansowe
Can any of the company-specific risk be diversified away by investing in both Polski Koncern 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 Polski Koncern and Centrum Finansowe 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 Centrum Finansowe Banku, you can compare the effects of market volatilities on Polski Koncern 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 Polski Koncern with a short position of Centrum Finansowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and Centrum Finansowe.
Diversification Opportunities for Polski Koncern and Centrum Finansowe
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Polski and Centrum is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy 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 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 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 Polski Koncern i.e., Polski Koncern and Centrum Finansowe go up and down completely randomly.
Pair Corralation between Polski Koncern and Centrum Finansowe
Assuming the 90 days trading horizon Polski Koncern Naftowy is expected to under-perform the Centrum Finansowe. But the stock apears to be less risky and, when comparing its historical volatility, Polski Koncern Naftowy is 1.49 times less risky than Centrum Finansowe. The stock trades about -0.07 of its potential returns per unit of risk. The Centrum Finansowe Banku is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 545.00 in Centrum Finansowe Banku on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Centrum Finansowe Banku or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polski Koncern Naftowy vs. Centrum Finansowe Banku
Performance |
| Timeline |
| Polski Koncern Naftowy |
| Centrum Finansowe Banku |
Polski Koncern and Centrum Finansowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and Centrum Finansowe
The main advantage of trading using opposite Polski Koncern and Centrum Finansowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern 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.| Polski Koncern vs. Asseco Business Solutions | Polski Koncern vs. Detalion Games SA | Polski Koncern vs. Asseco South Eastern | Polski Koncern vs. Movie Games SA |
| Centrum Finansowe vs. Carlson Investments SA | Centrum Finansowe vs. Asseco Business Solutions | Centrum Finansowe vs. Detalion Games 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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