Correlation Between Polski Koncern and Logintrade
Can any of the company-specific risk be diversified away by investing in both Polski Koncern and Logintrade 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 Logintrade 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 Logintrade SA, you can compare the effects of market volatilities on Polski Koncern and Logintrade 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 Logintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and Logintrade.
Diversification Opportunities for Polski Koncern and Logintrade
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Polski and Logintrade is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy and Logintrade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logintrade 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 Logintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logintrade SA has no effect on the direction of Polski Koncern i.e., Polski Koncern and Logintrade go up and down completely randomly.
Pair Corralation between Polski Koncern and Logintrade
Assuming the 90 days trading horizon Polski Koncern Naftowy is expected to generate 0.2 times more return on investment than Logintrade. However, Polski Koncern Naftowy is 5.05 times less risky than Logintrade. It trades about 0.57 of its potential returns per unit of risk. Logintrade SA is currently generating about 0.05 per unit of risk. If you would invest 4,690 in Polski Koncern Naftowy on October 25, 2024 and sell it today you would earn a total of 590.00 from holding Polski Koncern Naftowy or generate 12.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 62.5% |
| Values | Daily Returns |
Polski Koncern Naftowy vs. Logintrade SA
Performance |
| Timeline |
| Polski Koncern Naftowy |
| Logintrade SA |
Polski Koncern and Logintrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and Logintrade
The main advantage of trading using opposite Polski Koncern and Logintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern position performs unexpectedly, Logintrade 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 Logintrade will offset losses from the drop in Logintrade's long position.| Polski Koncern vs. Globe Trade Centre | Polski Koncern vs. Gaming Factory SA | Polski Koncern vs. Mlk Foods Public | Polski Koncern vs. Gamedust SA |
| Logintrade vs. MW Trade SA | Logintrade vs. X Trade Brokers | Logintrade vs. Road Studio SA | Logintrade vs. GreenX Metals |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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