Correlation Between Powszechny Zaklad and Apator SA
Can any of the company-specific risk be diversified away by investing in both Powszechny Zaklad and Apator SA 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 Apator SA 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 Apator SA, you can compare the effects of market volatilities on Powszechny Zaklad and Apator SA 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 Apator SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Powszechny Zaklad and Apator SA.
Diversification Opportunities for Powszechny Zaklad and Apator SA
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Powszechny and Apator is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Powszechny Zaklad Ubezpieczen and Apator SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apator 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 Apator SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apator SA has no effect on the direction of Powszechny Zaklad i.e., Powszechny Zaklad and Apator SA go up and down completely randomly.
Pair Corralation between Powszechny Zaklad and Apator SA
Assuming the 90 days trading horizon Powszechny Zaklad Ubezpieczen is expected to generate 1.3 times more return on investment than Apator SA. However, Powszechny Zaklad is 1.3 times more volatile than Apator SA. It trades about 0.16 of its potential returns per unit of risk. Apator SA is currently generating about -0.19 per unit of risk. If you would invest 4,136 in Powszechny Zaklad Ubezpieczen on September 13, 2024 and sell it today you would earn a total of 490.00 from holding Powszechny Zaklad Ubezpieczen or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Powszechny Zaklad Ubezpieczen vs. Apator SA
Performance |
| Timeline |
| Powszechny Zaklad |
| Apator SA |
Powszechny Zaklad and Apator SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Powszechny Zaklad and Apator SA
The main advantage of trading using opposite Powszechny Zaklad and Apator SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Powszechny Zaklad position performs unexpectedly, Apator SA 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 Apator SA will offset losses from the drop in Apator SA's long position.| Powszechny Zaklad vs. Asseco Business Solutions | Powszechny Zaklad vs. Detalion Games SA | Powszechny Zaklad vs. Asseco South Eastern | Powszechny Zaklad vs. HM Inwest SA |
| Apator SA vs. mBank SA | Apator SA vs. Centrum Finansowe Banku | Apator SA vs. Skyline Investment SA | Apator SA vs. Saule Technologies 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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