Correlation Between Powszechny Zaklad and APS Energia
Can any of the company-specific risk be diversified away by investing in both Powszechny Zaklad and APS Energia 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 Powszechny Zaklad and APS Energia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Powszechny Zaklad Ubezpieczen and APS Energia SA, you can compare the effects of market volatilities on Powszechny Zaklad and APS Energia 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 Powszechny Zaklad with a short position of APS Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Powszechny Zaklad and APS Energia.
Diversification Opportunities for Powszechny Zaklad and APS Energia
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Powszechny and APS is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Powszechny Zaklad Ubezpieczen and APS Energia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APS Energia SA and Powszechny Zaklad 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 Powszechny Zaklad Ubezpieczen are associated (or correlated) with APS Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APS Energia SA has no effect on the direction of Powszechny Zaklad i.e., Powszechny Zaklad and APS Energia go up and down completely randomly.
Pair Corralation between Powszechny Zaklad and APS Energia
Assuming the 90 days trading horizon Powszechny Zaklad Ubezpieczen is expected to generate 0.44 times more return on investment than APS Energia. However, Powszechny Zaklad Ubezpieczen is 2.25 times less risky than APS Energia. It trades about 0.06 of its potential returns per unit of risk. APS Energia SA is currently generating about 0.01 per unit of risk. If you would invest 2,774 in Powszechny Zaklad Ubezpieczen on August 30, 2024 and sell it today you would earn a total of 1,546 from holding Powszechny Zaklad Ubezpieczen or generate 55.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Powszechny Zaklad Ubezpieczen vs. APS Energia SA
Performance |
| Timeline |
| Powszechny Zaklad |
| APS Energia SA |
Powszechny Zaklad and APS Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Powszechny Zaklad and APS Energia
The main advantage of trading using opposite Powszechny Zaklad and APS Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Powszechny Zaklad position performs unexpectedly, APS Energia 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 APS Energia will offset losses from the drop in APS Energia's long position.| Powszechny Zaklad vs. Asseco Business Solutions | Powszechny Zaklad vs. Detalion Games SA | Powszechny Zaklad vs. Asseco South Eastern | Powszechny Zaklad vs. Vercom SA |
| APS Energia vs. Asseco Business Solutions | APS Energia vs. Detalion Games SA | APS Energia vs. Asseco South Eastern | APS Energia vs. Vercom SA |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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