Correlation Between Polski Koncern and SOFTWARE MANSION
Can any of the company-specific risk be diversified away by investing in both Polski Koncern and SOFTWARE MANSION 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 SOFTWARE MANSION 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 SOFTWARE MANSION SPOLKA, you can compare the effects of market volatilities on Polski Koncern and SOFTWARE MANSION 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 SOFTWARE MANSION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and SOFTWARE MANSION.
Diversification Opportunities for Polski Koncern and SOFTWARE MANSION
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Polski and SOFTWARE is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy and SOFTWARE MANSION SPOLKA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOFTWARE MANSION SPOLKA 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 SOFTWARE MANSION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOFTWARE MANSION SPOLKA has no effect on the direction of Polski Koncern i.e., Polski Koncern and SOFTWARE MANSION go up and down completely randomly.
Pair Corralation between Polski Koncern and SOFTWARE MANSION
Assuming the 90 days trading horizon Polski Koncern Naftowy is expected to generate 0.48 times more return on investment than SOFTWARE MANSION. However, Polski Koncern Naftowy is 2.09 times less risky than SOFTWARE MANSION. It trades about 0.45 of its potential returns per unit of risk. SOFTWARE MANSION SPOLKA is currently generating about -0.16 per unit of risk. If you would invest 4,937 in Polski Koncern Naftowy on November 3, 2024 and sell it today you would earn a total of 442.00 from holding Polski Koncern Naftowy or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Polski Koncern Naftowy vs. SOFTWARE MANSION SPOLKA
Performance |
| Timeline |
| Polski Koncern Naftowy |
| SOFTWARE MANSION SPOLKA |
Polski Koncern and SOFTWARE MANSION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and SOFTWARE MANSION
The main advantage of trading using opposite Polski Koncern and SOFTWARE MANSION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern position performs unexpectedly, SOFTWARE MANSION 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 SOFTWARE MANSION will offset losses from the drop in SOFTWARE MANSION's long position.| Polski Koncern vs. TEN SQUARE GAMES | Polski Koncern vs. Bank Millennium SA | Polski Koncern vs. Vivid Games SA | Polski Koncern vs. BNP Paribas Bank |
| SOFTWARE MANSION vs. Banco Santander SA | SOFTWARE MANSION vs. UniCredit SpA | SOFTWARE MANSION vs. CEZ as | SOFTWARE MANSION 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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