Correlation Between SAB Finance and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both SAB Finance and Komercni Banka 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 SAB Finance and Komercni Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAB Finance as and Komercni Banka AS, you can compare the effects of market volatilities on SAB Finance and Komercni Banka 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 SAB Finance with a short position of Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAB Finance and Komercni Banka.
Diversification Opportunities for SAB Finance and Komercni Banka
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SAB and Komercni is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SAB Finance as and Komercni Banka AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka AS and SAB Finance 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 SAB Finance as are associated (or correlated) with Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka AS has no effect on the direction of SAB Finance i.e., SAB Finance and Komercni Banka go up and down completely randomly.
Pair Corralation between SAB Finance and Komercni Banka
Assuming the 90 days trading horizon SAB Finance is expected to generate 3.96 times less return on investment than Komercni Banka. But when comparing it to its historical volatility, SAB Finance as is 1.03 times less risky than Komercni Banka. It trades about 0.03 of its potential returns per unit of risk. Komercni Banka AS is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 62,478 in Komercni Banka AS on August 24, 2024 and sell it today you would earn a total of 19,322 from holding Komercni Banka AS or generate 30.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
SAB Finance as vs. Komercni Banka AS
Performance |
| Timeline |
| SAB Finance as |
| Komercni Banka AS |
SAB Finance and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAB Finance and Komercni Banka
The main advantage of trading using opposite SAB Finance and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAB Finance position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka's long position.| SAB Finance vs. Komercni Banka AS | SAB Finance vs. Vienna Insurance Group | SAB Finance vs. Moneta Money Bank | SAB Finance vs. JT ARCH INVESTMENTS |
| Komercni Banka vs. Cez AS | Komercni Banka vs. Kofola CeskoSlovensko as | Komercni Banka vs. MT 1997 AS | Komercni Banka vs. HARDWARIO as |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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