Correlation Between Powszechny Zaklad and Globe Trade
Can any of the company-specific risk be diversified away by investing in both Powszechny Zaklad and Globe Trade 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 Globe Trade 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 Globe Trade Centre, you can compare the effects of market volatilities on Powszechny Zaklad and Globe Trade 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 Globe Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Powszechny Zaklad and Globe Trade.
Diversification Opportunities for Powszechny Zaklad and Globe Trade
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Powszechny and Globe is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Powszechny Zaklad Ubezpieczen and Globe Trade Centre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Trade Centre 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 Globe Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Trade Centre has no effect on the direction of Powszechny Zaklad i.e., Powszechny Zaklad and Globe Trade go up and down completely randomly.
Pair Corralation between Powszechny Zaklad and Globe Trade
Assuming the 90 days trading horizon Powszechny Zaklad Ubezpieczen is expected to generate 0.64 times more return on investment than Globe Trade. However, Powszechny Zaklad Ubezpieczen is 1.57 times less risky than Globe Trade. It trades about 0.05 of its potential returns per unit of risk. Globe Trade Centre is currently generating about -0.01 per unit of risk. If you would invest 3,063 in Powszechny Zaklad Ubezpieczen on August 27, 2024 and sell it today you would earn a total of 1,269 from holding Powszechny Zaklad Ubezpieczen or generate 41.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Powszechny Zaklad Ubezpieczen vs. Globe Trade Centre
Performance |
| Timeline |
| Powszechny Zaklad |
| Globe Trade Centre |
Powszechny Zaklad and Globe Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Powszechny Zaklad and Globe Trade
The main advantage of trading using opposite Powszechny Zaklad and Globe Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Powszechny Zaklad position performs unexpectedly, Globe Trade 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 Globe Trade will offset losses from the drop in Globe Trade's long position.| Powszechny Zaklad vs. LSI Software SA | Powszechny Zaklad vs. Ultimate Games SA | Powszechny Zaklad vs. Detalion Games SA | Powszechny Zaklad vs. Gaming Factory SA |
| Globe Trade vs. Asseco Business Solutions | Globe Trade vs. Detalion Games SA | Globe Trade vs. Asseco South Eastern | Globe Trade vs. CFI Holding 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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