Correlation Between Phillips and Polski Koncern
Can any of the company-specific risk be diversified away by investing in both Phillips and Polski Koncern 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 Phillips and Polski Koncern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phillips 66 and Polski Koncern Naftowy, you can compare the effects of market volatilities on Phillips and Polski Koncern 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 Phillips with a short position of Polski Koncern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phillips and Polski Koncern.
Diversification Opportunities for Phillips and Polski Koncern
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Phillips and Polski is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Phillips 66 and Polski Koncern Naftowy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polski Koncern Naftowy and Phillips 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 Phillips 66 are associated (or correlated) with Polski Koncern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polski Koncern Naftowy has no effect on the direction of Phillips i.e., Phillips and Polski Koncern go up and down completely randomly.
Pair Corralation between Phillips and Polski Koncern
Assuming the 90 days horizon Phillips 66 is expected to under-perform the Polski Koncern. But the stock apears to be less risky and, when comparing its historical volatility, Phillips 66 is 1.04 times less risky than Polski Koncern. The stock trades about -0.12 of its potential returns per unit of risk. The Polski Koncern Naftowy is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,230 in Polski Koncern Naftowy on September 23, 2024 and sell it today you would lose (117.00) from holding Polski Koncern Naftowy or give up 9.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phillips 66 vs. Polski Koncern Naftowy
Performance |
| Timeline |
| Phillips 66 |
| Polski Koncern Naftowy |
Phillips and Polski Koncern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phillips and Polski Koncern
The main advantage of trading using opposite Phillips and Polski Koncern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phillips position performs unexpectedly, Polski Koncern 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 Polski Koncern will offset losses from the drop in Polski Koncern's long position.| Phillips vs. Reliance Industries Limited | Phillips vs. Marathon Petroleum Corp | Phillips vs. Valero Energy | Phillips vs. Neste Oyj |
| Polski Koncern vs. Reliance Industries Limited | Polski Koncern vs. Marathon Petroleum Corp | Polski Koncern vs. Valero Energy | Polski Koncern vs. Neste Oyj |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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