Correlation Between SOFTWARE MANSION and Robs Group
Can any of the company-specific risk be diversified away by investing in both SOFTWARE MANSION and Robs Group 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 Robs Group 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 Robs Group Logistic, you can compare the effects of market volatilities on SOFTWARE MANSION and Robs Group 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 Robs Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFTWARE MANSION and Robs Group.
Diversification Opportunities for SOFTWARE MANSION and Robs Group
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between SOFTWARE and Robs is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SOFTWARE MANSION SPOLKA and Robs Group Logistic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robs Group Logistic 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 Robs Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robs Group Logistic has no effect on the direction of SOFTWARE MANSION i.e., SOFTWARE MANSION and Robs Group go up and down completely randomly.
Pair Corralation between SOFTWARE MANSION and Robs Group
Assuming the 90 days trading horizon SOFTWARE MANSION SPOLKA is expected to generate 0.6 times more return on investment than Robs Group. However, SOFTWARE MANSION SPOLKA is 1.66 times less risky than Robs Group. It trades about 0.02 of its potential returns per unit of risk. Robs Group Logistic is currently generating about -0.04 per unit of risk. If you would invest 2,896 in SOFTWARE MANSION SPOLKA on August 27, 2024 and sell it today you would earn a total of 104.00 from holding SOFTWARE MANSION SPOLKA or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.36% |
| Values | Daily Returns |
SOFTWARE MANSION SPOLKA vs. Robs Group Logistic
Performance |
| Timeline |
| SOFTWARE MANSION SPOLKA |
| Robs Group Logistic |
SOFTWARE MANSION and Robs Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFTWARE MANSION and Robs Group
The main advantage of trading using opposite SOFTWARE MANSION and Robs Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFTWARE MANSION position performs unexpectedly, Robs Group 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 Robs Group will offset losses from the drop in Robs Group's long position.| SOFTWARE MANSION vs. Banco Santander SA | SOFTWARE MANSION vs. UniCredit SpA | SOFTWARE MANSION vs. CEZ as | SOFTWARE MANSION vs. Polski Koncern Naftowy |
| Robs Group vs. SOFTWARE MANSION SPOLKA | Robs Group vs. LSI Software SA | Robs Group vs. Enter Air SA | Robs Group vs. Quantum Software 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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