Correlation Between RAFAKO SA and Biztech Konsulting
Can any of the company-specific risk be diversified away by investing in both RAFAKO SA and Biztech Konsulting 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 RAFAKO SA and Biztech Konsulting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RAFAKO SA and Biztech Konsulting SA, you can compare the effects of market volatilities on RAFAKO SA and Biztech Konsulting 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 RAFAKO SA with a short position of Biztech Konsulting. Check out your portfolio center. Please also check ongoing floating volatility patterns of RAFAKO SA and Biztech Konsulting.
Diversification Opportunities for RAFAKO SA and Biztech Konsulting
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RAFAKO and Biztech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RAFAKO SA and Biztech Konsulting SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biztech Konsulting and RAFAKO SA 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 RAFAKO SA are associated (or correlated) with Biztech Konsulting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biztech Konsulting has no effect on the direction of RAFAKO SA i.e., RAFAKO SA and Biztech Konsulting go up and down completely randomly.
Pair Corralation between RAFAKO SA and Biztech Konsulting
If you would invest 14.00 in Biztech Konsulting SA on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Biztech Konsulting SA or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
RAFAKO SA vs. Biztech Konsulting SA
Performance |
| Timeline |
| RAFAKO SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Biztech Konsulting |
RAFAKO SA and Biztech Konsulting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RAFAKO SA and Biztech Konsulting
The main advantage of trading using opposite RAFAKO SA and Biztech Konsulting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RAFAKO SA position performs unexpectedly, Biztech Konsulting 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 Biztech Konsulting will offset losses from the drop in Biztech Konsulting's long position.| RAFAKO SA vs. Skyline Investment SA | RAFAKO SA vs. Alior Bank SA | RAFAKO SA vs. MCI Management SA | RAFAKO SA vs. Bank Millennium SA |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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