Correlation Between Podravka Prehrambena and Atlantic Grupa
Can any of the company-specific risk be diversified away by investing in both Podravka Prehrambena and Atlantic Grupa 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 Podravka Prehrambena and Atlantic Grupa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Podravka Prehrambena Industrija and Atlantic Grupa dd, you can compare the effects of market volatilities on Podravka Prehrambena and Atlantic Grupa 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 Podravka Prehrambena with a short position of Atlantic Grupa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Podravka Prehrambena and Atlantic Grupa.
Diversification Opportunities for Podravka Prehrambena and Atlantic Grupa
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Podravka and Atlantic is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Podravka Prehrambena Industrij and Atlantic Grupa dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Grupa dd and Podravka Prehrambena 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 Podravka Prehrambena Industrija are associated (or correlated) with Atlantic Grupa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Grupa dd has no effect on the direction of Podravka Prehrambena i.e., Podravka Prehrambena and Atlantic Grupa go up and down completely randomly.
Pair Corralation between Podravka Prehrambena and Atlantic Grupa
Assuming the 90 days trading horizon Podravka Prehrambena Industrija is expected to under-perform the Atlantic Grupa. In addition to that, Podravka Prehrambena is 2.33 times more volatile than Atlantic Grupa dd. It trades about -0.19 of its total potential returns per unit of risk. Atlantic Grupa dd is currently generating about -0.1 per unit of volatility. If you would invest 5,200 in Atlantic Grupa dd on September 12, 2024 and sell it today you would lose (100.00) from holding Atlantic Grupa dd or give up 1.92% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.48% |
Values | Daily Returns |
Podravka Prehrambena Industrij vs. Atlantic Grupa dd
Performance |
Timeline |
Podravka Prehrambena |
Atlantic Grupa dd |
Podravka Prehrambena and Atlantic Grupa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Podravka Prehrambena and Atlantic Grupa
The main advantage of trading using opposite Podravka Prehrambena and Atlantic Grupa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Podravka Prehrambena position performs unexpectedly, Atlantic Grupa 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 Atlantic Grupa will offset losses from the drop in Atlantic Grupa's long position.Podravka Prehrambena vs. Dalekovod dd | Podravka Prehrambena vs. Institut IGH dd | Podravka Prehrambena vs. Jadroplov dd | Podravka Prehrambena vs. Zagrebacka Banka dd |
Atlantic Grupa vs. Dalekovod dd | Atlantic Grupa vs. Institut IGH dd | Atlantic Grupa vs. Jadroplov dd | Atlantic Grupa vs. Zagrebacka Banka dd |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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