Correlation Between Polski Koncern and Par Pacific
Can any of the company-specific risk be diversified away by investing in both Polski Koncern and Par Pacific 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 Par Pacific 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 Par Pacific Holdings, you can compare the effects of market volatilities on Polski Koncern and Par Pacific 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 Par Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and Par Pacific.
Diversification Opportunities for Polski Koncern and Par Pacific
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Polski and Par is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy and Par Pacific Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Par Pacific Holdings 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 Par Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Par Pacific Holdings has no effect on the direction of Polski Koncern i.e., Polski Koncern and Par Pacific go up and down completely randomly.
Pair Corralation between Polski Koncern and Par Pacific
Assuming the 90 days trading horizon Polski Koncern is expected to generate 105.66 times less return on investment than Par Pacific. In addition to that, Polski Koncern is 1.02 times more volatile than Par Pacific Holdings. It trades about 0.0 of its total potential returns per unit of risk. Par Pacific Holdings is currently generating about 0.32 per unit of volatility. If you would invest 1,400 in Par Pacific Holdings on September 2, 2024 and sell it today you would earn a total of 230.00 from holding Par Pacific Holdings or generate 16.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polski Koncern Naftowy vs. Par Pacific Holdings
Performance |
| Timeline |
| Polski Koncern Naftowy |
| Par Pacific Holdings |
Polski Koncern and Par Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and Par Pacific
The main advantage of trading using opposite Polski Koncern and Par Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern position performs unexpectedly, Par Pacific 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 Par Pacific will offset losses from the drop in Par Pacific's long position.| Polski Koncern vs. Superior Plus Corp | Polski Koncern vs. NMI Holdings | Polski Koncern vs. Origin Agritech | Polski Koncern vs. SIVERS SEMICONDUCTORS AB |
| Par Pacific vs. Global Ship Lease | Par Pacific vs. G III Apparel Group | Par Pacific vs. Lendlease Group | Par Pacific vs. UNITED RENTALS |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Positions Ratings 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 | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |