Correlation Between Polski Koncern and Inpro SA
Can any of the company-specific risk be diversified away by investing in both Polski Koncern and Inpro SA 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 Inpro SA 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 Inpro SA, you can compare the effects of market volatilities on Polski Koncern and Inpro SA 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 Inpro SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and Inpro SA.
Diversification Opportunities for Polski Koncern and Inpro SA
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Polski and Inpro is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy and Inpro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inpro 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 Inpro SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inpro SA has no effect on the direction of Polski Koncern i.e., Polski Koncern and Inpro SA go up and down completely randomly.
Pair Corralation between Polski Koncern and Inpro SA
Assuming the 90 days trading horizon Polski Koncern Naftowy is expected to generate 0.44 times more return on investment than Inpro SA. However, Polski Koncern Naftowy is 2.25 times less risky than Inpro SA. It trades about 0.44 of its potential returns per unit of risk. Inpro SA is currently generating about -0.01 per unit of risk. If you would invest 4,937 in Polski Koncern Naftowy on November 2, 2024 and sell it today you would earn a total of 405.00 from holding Polski Koncern Naftowy or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polski Koncern Naftowy vs. Inpro SA
Performance |
| Timeline |
| Polski Koncern Naftowy |
| Inpro SA |
Polski Koncern and Inpro SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and Inpro SA
The main advantage of trading using opposite Polski Koncern and Inpro SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern position performs unexpectedly, Inpro SA 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 Inpro SA will offset losses from the drop in Inpro SA's long position.| Polski Koncern vs. MCI Management SA | Polski Koncern vs. SOFTWARE MANSION SPOLKA | Polski Koncern vs. Creativeforge Games SA | Polski Koncern vs. Investment Friends Capital |
| Inpro SA vs. Banco Santander SA | Inpro SA vs. UniCredit SpA | Inpro SA vs. CEZ as | Inpro SA vs. Polski Koncern Naftowy |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |