Correlation Between Polski Koncern and Marathon Petroleum
Can any of the company-specific risk be diversified away by investing in both Polski Koncern and Marathon Petroleum 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 Marathon Petroleum 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 Marathon Petroleum Corp, you can compare the effects of market volatilities on Polski Koncern and Marathon Petroleum 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 Marathon Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and Marathon Petroleum.
Diversification Opportunities for Polski Koncern and Marathon Petroleum
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Polski and Marathon is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy and Marathon Petroleum Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Petroleum Corp 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 Marathon Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Petroleum Corp has no effect on the direction of Polski Koncern i.e., Polski Koncern and Marathon Petroleum go up and down completely randomly.
Pair Corralation between Polski Koncern and Marathon Petroleum
Assuming the 90 days trading horizon Polski Koncern Naftowy is expected to generate 1.58 times more return on investment than Marathon Petroleum. However, Polski Koncern is 1.58 times more volatile than Marathon Petroleum Corp. It trades about 0.05 of its potential returns per unit of risk. Marathon Petroleum Corp is currently generating about 0.05 per unit of risk. If you would invest 621.00 in Polski Koncern Naftowy on September 4, 2024 and sell it today you would earn a total of 574.00 from holding Polski Koncern Naftowy or generate 92.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Polski Koncern Naftowy vs. Marathon Petroleum Corp
Performance |
| Timeline |
| Polski Koncern Naftowy |
| Marathon Petroleum Corp |
Polski Koncern and Marathon Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and Marathon Petroleum
The main advantage of trading using opposite Polski Koncern and Marathon Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern position performs unexpectedly, Marathon Petroleum 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 Marathon Petroleum will offset losses from the drop in Marathon Petroleum's long position.| Polski Koncern vs. Quaker Chemical | Polski Koncern vs. UET United Electronic | Polski Koncern vs. Sanyo Chemical Industries | Polski Koncern vs. STMICROELECTRONICS |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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