Correlation Between Skyline Investment and Bank Polska
Can any of the company-specific risk be diversified away by investing in both Skyline Investment and Bank Polska 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 Skyline Investment and Bank Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skyline Investment SA and Bank Polska Kasa, you can compare the effects of market volatilities on Skyline Investment and Bank Polska 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 Skyline Investment with a short position of Bank Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skyline Investment and Bank Polska.
Diversification Opportunities for Skyline Investment and Bank Polska
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Skyline and Bank is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Skyline Investment SA and Bank Polska Kasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Polska Kasa and Skyline Investment 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 Skyline Investment SA are associated (or correlated) with Bank Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Polska Kasa has no effect on the direction of Skyline Investment i.e., Skyline Investment and Bank Polska go up and down completely randomly.
Pair Corralation between Skyline Investment and Bank Polska
Assuming the 90 days trading horizon Skyline Investment SA is expected to generate 1.17 times more return on investment than Bank Polska. However, Skyline Investment is 1.17 times more volatile than Bank Polska Kasa. It trades about 0.01 of its potential returns per unit of risk. Bank Polska Kasa is currently generating about -0.02 per unit of risk. If you would invest 160.00 in Skyline Investment SA on October 26, 2024 and sell it today you would lose (3.00) from holding Skyline Investment SA or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skyline Investment SA vs. Bank Polska Kasa
Performance |
| Timeline |
| Skyline Investment |
| Bank Polska Kasa |
Skyline Investment and Bank Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skyline Investment and Bank Polska
The main advantage of trading using opposite Skyline Investment and Bank Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skyline Investment position performs unexpectedly, Bank Polska 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 Bank Polska will offset losses from the drop in Bank Polska's long position.| Skyline Investment vs. Saule Technologies SA | Skyline Investment vs. Quantum Software SA | Skyline Investment vs. LSI Software SA | Skyline Investment vs. Noble Financials 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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