Correlation Between Polski Koncern and Gremi Media
Can any of the company-specific risk be diversified away by investing in both Polski Koncern and Gremi Media 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 Gremi Media 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 Gremi Media SA, you can compare the effects of market volatilities on Polski Koncern and Gremi Media 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 Gremi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and Gremi Media.
Diversification Opportunities for Polski Koncern and Gremi Media
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Polski and Gremi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy and Gremi Media SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gremi Media 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 Gremi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gremi Media SA has no effect on the direction of Polski Koncern i.e., Polski Koncern and Gremi Media go up and down completely randomly.
Pair Corralation between Polski Koncern and Gremi Media
Assuming the 90 days trading horizon Polski Koncern Naftowy is expected to generate 0.28 times more return on investment than Gremi Media. However, Polski Koncern Naftowy is 3.55 times less risky than Gremi Media. It trades about 0.0 of its potential returns per unit of risk. Gremi Media SA is currently generating about -0.09 per unit of risk. If you would invest 5,487 in Polski Koncern Naftowy on September 3, 2024 and sell it today you would lose (385.00) from holding Polski Koncern Naftowy or give up 7.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 28.28% |
| Values | Daily Returns |
Polski Koncern Naftowy vs. Gremi Media SA
Performance |
| Timeline |
| Polski Koncern Naftowy |
| Gremi Media SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Polski Koncern and Gremi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and Gremi Media
The main advantage of trading using opposite Polski Koncern and Gremi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern position performs unexpectedly, Gremi Media 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 Gremi Media will offset losses from the drop in Gremi Media's long position.| Polski Koncern vs. Quantum Software SA | Polski Koncern vs. New Tech Venture | Polski Koncern vs. SOFTWARE MANSION SPOLKA | Polski Koncern vs. PMPG Polskie Media |
| Gremi Media vs. Asseco Business Solutions | Gremi Media vs. Kogeneracja SA | Gremi Media vs. Asseco South Eastern | Gremi Media 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |