Correlation Between Prabos Plus and Cez AS
Can any of the company-specific risk be diversified away by investing in both Prabos Plus and Cez AS 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 Prabos Plus and Cez AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prabos Plus as and Cez AS, you can compare the effects of market volatilities on Prabos Plus and Cez AS 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 Prabos Plus with a short position of Cez AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prabos Plus and Cez AS.
Diversification Opportunities for Prabos Plus and Cez AS
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Prabos and Cez is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Prabos Plus as and Cez AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cez AS and Prabos Plus 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 Prabos Plus as are associated (or correlated) with Cez AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cez AS has no effect on the direction of Prabos Plus i.e., Prabos Plus and Cez AS go up and down completely randomly.
Pair Corralation between Prabos Plus and Cez AS
Assuming the 90 days trading horizon Prabos Plus is expected to generate 11.5 times less return on investment than Cez AS. In addition to that, Prabos Plus is 2.46 times more volatile than Cez AS. It trades about 0.01 of its total potential returns per unit of risk. Cez AS is currently generating about 0.32 per unit of volatility. If you would invest 90,100 in Cez AS on August 25, 2024 and sell it today you would earn a total of 6,050 from holding Cez AS or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prabos Plus as vs. Cez AS
Performance |
| Timeline |
| Prabos Plus as |
| Cez AS |
Prabos Plus and Cez AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prabos Plus and Cez AS
The main advantage of trading using opposite Prabos Plus and Cez AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prabos Plus position performs unexpectedly, Cez AS 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 Cez AS will offset losses from the drop in Cez AS's long position.| Prabos Plus vs. Volkswagen AG | Prabos Plus vs. GEVORKYAN as | Prabos Plus vs. Philip Morris CR | Prabos Plus vs. Nokia Oyj |
| Cez AS vs. Komercni Banka AS | Cez AS vs. Moneta Money Bank | Cez AS vs. Erste Group Bank | Cez AS vs. Colt CZ Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |