Correlation Between Powszechny Zaklad and Live Motion
Can any of the company-specific risk be diversified away by investing in both Powszechny Zaklad and Live Motion 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 Live Motion 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 Live Motion Games, you can compare the effects of market volatilities on Powszechny Zaklad and Live Motion 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 Live Motion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Powszechny Zaklad and Live Motion.
Diversification Opportunities for Powszechny Zaklad and Live Motion
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Powszechny and Live is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Powszechny Zaklad Ubezpieczen and Live Motion Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Motion Games 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 Live Motion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Motion Games has no effect on the direction of Powszechny Zaklad i.e., Powszechny Zaklad and Live Motion go up and down completely randomly.
Pair Corralation between Powszechny Zaklad and Live Motion
Assuming the 90 days trading horizon Powszechny Zaklad Ubezpieczen is expected to generate 0.6 times more return on investment than Live Motion. However, Powszechny Zaklad Ubezpieczen is 1.67 times less risky than Live Motion. It trades about 0.22 of its potential returns per unit of risk. Live Motion Games is currently generating about -0.45 per unit of risk. If you would invest 4,048 in Powszechny Zaklad Ubezpieczen on September 2, 2024 and sell it today you would earn a total of 372.00 from holding Powszechny Zaklad Ubezpieczen or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Powszechny Zaklad Ubezpieczen vs. Live Motion Games
Performance |
| Timeline |
| Powszechny Zaklad |
| Live Motion Games |
Powszechny Zaklad and Live Motion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Powszechny Zaklad and Live Motion
The main advantage of trading using opposite Powszechny Zaklad and Live Motion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Powszechny Zaklad position performs unexpectedly, Live Motion 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 Live Motion will offset losses from the drop in Live Motion's long position.| Powszechny Zaklad vs. Live Motion Games | Powszechny Zaklad vs. Echo Investment SA | Powszechny Zaklad vs. Alior Bank SA | Powszechny Zaklad vs. Tower Investments SA |
| Live Motion vs. ECC Games SA | Live Motion vs. Asseco Business Solutions | Live Motion vs. Detalion Games SA | Live Motion vs. Asseco South Eastern |
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 Stocks Directory module to find actively traded stocks across global markets.
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