Correlation Between Tower Investments and Kino Polska
Can any of the company-specific risk be diversified away by investing in both Tower Investments and Kino 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 Tower Investments and Kino Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tower Investments SA and Kino Polska TV, you can compare the effects of market volatilities on Tower Investments and Kino 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 Tower Investments with a short position of Kino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tower Investments and Kino Polska.
Diversification Opportunities for Tower Investments and Kino Polska
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tower and Kino is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Tower Investments SA and Kino Polska TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kino Polska TV and Tower Investments 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 Tower Investments SA are associated (or correlated) with Kino Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kino Polska TV has no effect on the direction of Tower Investments i.e., Tower Investments and Kino Polska go up and down completely randomly.
Pair Corralation between Tower Investments and Kino Polska
Assuming the 90 days trading horizon Tower Investments SA is expected to generate 4.46 times more return on investment than Kino Polska. However, Tower Investments is 4.46 times more volatile than Kino Polska TV. It trades about 0.04 of its potential returns per unit of risk. Kino Polska TV is currently generating about 0.04 per unit of risk. If you would invest 262.00 in Tower Investments SA on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Tower Investments SA or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Tower Investments SA vs. Kino Polska TV
Performance |
| Timeline |
| Tower Investments |
| Kino Polska TV |
Tower Investments and Kino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tower Investments and Kino Polska
The main advantage of trading using opposite Tower Investments and Kino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tower Investments position performs unexpectedly, Kino 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 Kino Polska will offset losses from the drop in Kino Polska's long position.| Tower Investments vs. Asseco Business Solutions | Tower Investments vs. Detalion Games SA | Tower Investments vs. Asseco South Eastern | Tower Investments vs. CFI Holding SA |
| Kino Polska vs. Banco Santander SA | Kino Polska vs. UniCredit SpA | Kino Polska vs. CEZ as | Kino Polska vs. Polski Koncern Naftowy |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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