Correlation Between Polski Koncern and Computer
Can any of the company-specific risk be diversified away by investing in both Polski Koncern and Computer 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 Computer 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 Computer And Technologies, you can compare the effects of market volatilities on Polski Koncern and Computer 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 Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and Computer.
Diversification Opportunities for Polski Koncern and Computer
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Polski and Computer is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy and Computer And Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer And Technologies 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 Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer And Technologies has no effect on the direction of Polski Koncern i.e., Polski Koncern and Computer go up and down completely randomly.
Pair Corralation between Polski Koncern and Computer
Assuming the 90 days trading horizon Polski Koncern is expected to generate 1.17 times less return on investment than Computer. But when comparing it to its historical volatility, Polski Koncern Naftowy is 1.17 times less risky than Computer. It trades about 0.05 of its potential returns per unit of risk. Computer And Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9.28 in Computer And Technologies on August 29, 2024 and sell it today you would earn a total of 9.72 from holding Computer And Technologies or generate 104.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polski Koncern Naftowy vs. Computer And Technologies
Performance |
| Timeline |
| Polski Koncern Naftowy |
| Computer And Technologies |
Polski Koncern and Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and Computer
The main advantage of trading using opposite Polski Koncern and Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern position performs unexpectedly, Computer 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 Computer will offset losses from the drop in Computer's long position.| Polski Koncern vs. Computer And Technologies | Polski Koncern vs. FANDIFI TECHNOLOGY P | Polski Koncern vs. Carsales | Polski Koncern vs. Micron Technology |
| Computer vs. Accenture plc | Computer vs. International Business Machines | Computer vs. Superior Plus Corp | Computer vs. SIVERS SEMICONDUCTORS AB |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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