Correlation Between PX Prague and SAB Finance
Can any of the company-specific risk be diversified away by investing in both PX Prague and SAB Finance 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 PX Prague and SAB Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PX Prague Stock and SAB Finance as, you can compare the effects of market volatilities on PX Prague and SAB Finance 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 PX Prague with a short position of SAB Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PX Prague and SAB Finance.
Diversification Opportunities for PX Prague and SAB Finance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PX Prague and SAB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PX Prague Stock and SAB Finance as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAB Finance as and PX Prague 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 PX Prague Stock are associated (or correlated) with SAB Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAB Finance as has no effect on the direction of PX Prague i.e., PX Prague and SAB Finance go up and down completely randomly.
Pair Corralation between PX Prague and SAB Finance
If you would invest 159,452 in PX Prague Stock on August 30, 2024 and sell it today you would earn a total of 9,430 from holding PX Prague Stock or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
PX Prague Stock vs. SAB Finance as
Performance |
| Timeline |
PX Prague and SAB Finance Volatility Contrast
Predicted Return Density |
| Returns |
SAB Finance as
Pair trading matchups for SAB Finance
Pair Trading with PX Prague and SAB Finance
The main advantage of trading using opposite PX Prague and SAB Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PX Prague position performs unexpectedly, SAB Finance 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 SAB Finance will offset losses from the drop in SAB Finance's long position.The idea behind PX Prague Stock and SAB Finance as pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SAB Finance vs. Raiffeisen Bank International | SAB Finance vs. Vienna Insurance Group | SAB Finance vs. Komercni Banka AS | SAB Finance vs. UNIQA Insurance 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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