Correlation Between Polski Koncern and Kogeneracja
Can any of the company-specific risk be diversified away by investing in both Polski Koncern and Kogeneracja 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 Kogeneracja 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 Kogeneracja SA, you can compare the effects of market volatilities on Polski Koncern and Kogeneracja 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 Kogeneracja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and Kogeneracja.
Diversification Opportunities for Polski Koncern and Kogeneracja
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Polski and Kogeneracja is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy and Kogeneracja SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kogeneracja 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 Kogeneracja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kogeneracja SA has no effect on the direction of Polski Koncern i.e., Polski Koncern and Kogeneracja go up and down completely randomly.
Pair Corralation between Polski Koncern and Kogeneracja
Assuming the 90 days trading horizon Polski Koncern Naftowy is expected to under-perform the Kogeneracja. But the stock apears to be less risky and, when comparing its historical volatility, Polski Koncern Naftowy is 2.09 times less risky than Kogeneracja. The stock trades about -0.16 of its potential returns per unit of risk. The Kogeneracja SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,290 in Kogeneracja SA on September 3, 2024 and sell it today you would earn a total of 690.00 from holding Kogeneracja SA or generate 13.04% 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. Kogeneracja SA
Performance |
| Timeline |
| Polski Koncern Naftowy |
| Kogeneracja SA |
Polski Koncern and Kogeneracja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and Kogeneracja
The main advantage of trading using opposite Polski Koncern and Kogeneracja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern position performs unexpectedly, Kogeneracja 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 Kogeneracja will offset losses from the drop in Kogeneracja'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 |
| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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