Correlation Between Polski Koncern and Kino Polska
Can any of the company-specific risk be diversified away by investing in both Polski Koncern and Kino Polska 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 Kino Polska 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 Kino Polska TV, you can compare the effects of market volatilities on Polski Koncern and Kino Polska 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 Kino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and Kino Polska.
Diversification Opportunities for Polski Koncern and Kino Polska
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Polski and Kino is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy and Kino Polska TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kino Polska TV 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 Kino Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kino Polska TV has no effect on the direction of Polski Koncern i.e., Polski Koncern and Kino Polska go up and down completely randomly.
Pair Corralation between Polski Koncern and Kino Polska
Assuming the 90 days trading horizon Polski Koncern Naftowy is expected to under-perform the Kino Polska. But the stock apears to be less risky and, when comparing its historical volatility, Polski Koncern Naftowy is 1.17 times less risky than Kino Polska. The stock trades about 0.0 of its potential returns per unit of risk. The Kino Polska TV is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,140 in Kino Polska TV on September 3, 2024 and sell it today you would earn a total of 855.00 from holding Kino Polska TV or generate 75.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polski Koncern Naftowy vs. Kino Polska TV
Performance |
| Timeline |
| Polski Koncern Naftowy |
| Kino Polska TV |
Polski Koncern and Kino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and Kino Polska
The main advantage of trading using opposite Polski Koncern and Kino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern position performs unexpectedly, Kino Polska 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 Kino Polska will offset losses from the drop in Kino Polska'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 |
| Kino Polska vs. Banco Santander SA | Kino Polska vs. UniCredit SpA | Kino Polska vs. CEZ as | Kino Polska 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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