Correlation Between Polski Koncern and Grupa HRC
Can any of the company-specific risk be diversified away by investing in both Polski Koncern and Grupa HRC 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 Grupa HRC 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 Grupa HRC SA, you can compare the effects of market volatilities on Polski Koncern and Grupa HRC 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 Grupa HRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and Grupa HRC.
Diversification Opportunities for Polski Koncern and Grupa HRC
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Polski and Grupa is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy and Grupa HRC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupa HRC 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 Grupa HRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupa HRC SA has no effect on the direction of Polski Koncern i.e., Polski Koncern and Grupa HRC go up and down completely randomly.
Pair Corralation between Polski Koncern and Grupa HRC
Assuming the 90 days trading horizon Polski Koncern is expected to generate 3.11 times less return on investment than Grupa HRC. But when comparing it to its historical volatility, Polski Koncern Naftowy is 2.67 times less risky than Grupa HRC. It trades about 0.51 of its potential returns per unit of risk. Grupa HRC SA is currently generating about 0.59 of returns per unit of risk over similar time horizon. If you would invest 74.00 in Grupa HRC SA on November 28, 2024 and sell it today you would earn a total of 15.00 from holding Grupa HRC SA or generate 20.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 40.91% |
| Values | Daily Returns |
Polski Koncern Naftowy vs. Grupa HRC SA
Performance |
| Timeline |
| Polski Koncern Naftowy |
| Grupa HRC SA |
Polski Koncern and Grupa HRC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and Grupa HRC
The main advantage of trading using opposite Polski Koncern and Grupa HRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern position performs unexpectedly, Grupa HRC 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 Grupa HRC will offset losses from the drop in Grupa HRC's long position.| Polski Koncern vs. Mercator Medical SA | Polski Koncern vs. Saule Technologies SA | Polski Koncern vs. PMPG Polskie Media | Polski Koncern vs. Skyline Investment SA |
| Grupa HRC vs. Bank Millennium SA | Grupa HRC vs. Datawalk SA | Grupa HRC vs. Medicalg | Grupa HRC vs. Investment Friends Capital |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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