Correlation Between Saule Technologies and Bank Polska
Can any of the company-specific risk be diversified away by investing in both Saule Technologies 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 Saule Technologies and Bank Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saule Technologies SA and Bank Polska Kasa, you can compare the effects of market volatilities on Saule Technologies 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 Saule Technologies with a short position of Bank Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and Bank Polska.
Diversification Opportunities for Saule Technologies and Bank Polska
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saule and Bank is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies 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 Saule Technologies 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 Saule Technologies 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 Saule Technologies i.e., Saule Technologies and Bank Polska go up and down completely randomly.
Pair Corralation between Saule Technologies and Bank Polska
Assuming the 90 days trading horizon Saule Technologies is expected to generate 2.17 times less return on investment than Bank Polska. In addition to that, Saule Technologies is 3.01 times more volatile than Bank Polska Kasa. It trades about 0.07 of its total potential returns per unit of risk. Bank Polska Kasa is currently generating about 0.49 per unit of volatility. If you would invest 13,910 in Bank Polska Kasa on November 3, 2024 and sell it today you would earn a total of 2,125 from holding Bank Polska Kasa or generate 15.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saule Technologies SA vs. Bank Polska Kasa
Performance |
| Timeline |
| Saule Technologies |
| Bank Polska Kasa |
Saule Technologies and Bank Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and Bank Polska
The main advantage of trading using opposite Saule Technologies and Bank Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies 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.| Saule Technologies vs. Clean Carbon Energy | Saule Technologies vs. ADX | Saule Technologies vs. Agroliga Group PLC | Saule Technologies vs. Vee SA |
| Bank Polska vs. LSI Software SA | Bank Polska vs. Quantum Software SA | Bank Polska vs. UniCredit SpA | Bank Polska vs. M Food SA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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