Correlation Between Podravka Prehrambena and Hrvatska Postanska
Can any of the company-specific risk be diversified away by investing in both Podravka Prehrambena and Hrvatska Postanska 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 Hrvatska Postanska 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 Hrvatska Postanska Banka, you can compare the effects of market volatilities on Podravka Prehrambena and Hrvatska Postanska 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 Hrvatska Postanska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Podravka Prehrambena and Hrvatska Postanska.
Diversification Opportunities for Podravka Prehrambena and Hrvatska Postanska
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Podravka and Hrvatska is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Podravka Prehrambena Industrij and Hrvatska Postanska Banka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hrvatska Postanska Banka 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 Hrvatska Postanska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hrvatska Postanska Banka has no effect on the direction of Podravka Prehrambena i.e., Podravka Prehrambena and Hrvatska Postanska go up and down completely randomly.
Pair Corralation between Podravka Prehrambena and Hrvatska Postanska
Assuming the 90 days trading horizon Podravka Prehrambena is expected to generate 2.52 times less return on investment than Hrvatska Postanska. But when comparing it to its historical volatility, Podravka Prehrambena Industrija is 1.45 times less risky than Hrvatska Postanska. It trades about 0.09 of its potential returns per unit of risk. Hrvatska Postanska Banka is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 10,413 in Hrvatska Postanska Banka on September 13, 2024 and sell it today you would earn a total of 23,987 from holding Hrvatska Postanska Banka or generate 230.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 85.74% |
| Values | Daily Returns |
Podravka Prehrambena Industrij vs. Hrvatska Postanska Banka
Performance |
| Timeline |
| Podravka Prehrambena |
| Hrvatska Postanska Banka |
Podravka Prehrambena and Hrvatska Postanska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Podravka Prehrambena and Hrvatska Postanska
The main advantage of trading using opposite Podravka Prehrambena and Hrvatska Postanska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Podravka Prehrambena position performs unexpectedly, Hrvatska Postanska 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 Hrvatska Postanska will offset losses from the drop in Hrvatska Postanska'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 |
| Hrvatska Postanska vs. Zagrebacka Banka dd | Hrvatska Postanska vs. AD Plastik dd | Hrvatska Postanska vs. Dalekovod dd | Hrvatska Postanska vs. Podravka Prehrambena Industrija |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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