Correlation Between SOFTWARE MANSION and Komputronik
Can any of the company-specific risk be diversified away by investing in both SOFTWARE MANSION and Komputronik 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 SOFTWARE MANSION and Komputronik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOFTWARE MANSION SPOLKA and Komputronik SA, you can compare the effects of market volatilities on SOFTWARE MANSION and Komputronik 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 SOFTWARE MANSION with a short position of Komputronik. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFTWARE MANSION and Komputronik.
Diversification Opportunities for SOFTWARE MANSION and Komputronik
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SOFTWARE and Komputronik is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SOFTWARE MANSION SPOLKA and Komputronik SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komputronik SA and SOFTWARE MANSION 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 SOFTWARE MANSION SPOLKA are associated (or correlated) with Komputronik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komputronik SA has no effect on the direction of SOFTWARE MANSION i.e., SOFTWARE MANSION and Komputronik go up and down completely randomly.
Pair Corralation between SOFTWARE MANSION and Komputronik
Assuming the 90 days trading horizon SOFTWARE MANSION SPOLKA is expected to generate 1.23 times more return on investment than Komputronik. However, SOFTWARE MANSION is 1.23 times more volatile than Komputronik SA. It trades about 0.03 of its potential returns per unit of risk. Komputronik SA is currently generating about 0.02 per unit of risk. If you would invest 2,896 in SOFTWARE MANSION SPOLKA on September 13, 2024 and sell it today you would earn a total of 224.00 from holding SOFTWARE MANSION SPOLKA or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 52.63% |
| Values | Daily Returns |
SOFTWARE MANSION SPOLKA vs. Komputronik SA
Performance |
| Timeline |
| SOFTWARE MANSION SPOLKA |
| Komputronik SA |
SOFTWARE MANSION and Komputronik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFTWARE MANSION and Komputronik
The main advantage of trading using opposite SOFTWARE MANSION and Komputronik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFTWARE MANSION position performs unexpectedly, Komputronik 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 Komputronik will offset losses from the drop in Komputronik's long position.| SOFTWARE MANSION vs. Play2Chill SA | SOFTWARE MANSION vs. Immobile | SOFTWARE MANSION vs. GreenX Metals | SOFTWARE MANSION vs. Gamedust SA |
| Komputronik vs. PLAYWAY SA | Komputronik vs. SOFTWARE MANSION SPOLKA | Komputronik vs. GreenX Metals | Komputronik vs. Saule Technologies 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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