Correlation Between Triton Development and Kogeneracja
Can any of the company-specific risk be diversified away by investing in both Triton Development and Kogeneracja 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 Triton Development and Kogeneracja into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triton Development SA and Kogeneracja SA, you can compare the effects of market volatilities on Triton Development and Kogeneracja 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 Triton Development with a short position of Kogeneracja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triton Development and Kogeneracja.
Diversification Opportunities for Triton Development and Kogeneracja
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Triton and Kogeneracja is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Triton Development SA and Kogeneracja SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kogeneracja SA and Triton Development 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 Triton Development SA are associated (or correlated) with Kogeneracja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kogeneracja SA has no effect on the direction of Triton Development i.e., Triton Development and Kogeneracja go up and down completely randomly.
Pair Corralation between Triton Development and Kogeneracja
Assuming the 90 days trading horizon Triton Development SA is expected to under-perform the Kogeneracja. In addition to that, Triton Development is 1.31 times more volatile than Kogeneracja SA. It trades about -0.14 of its total potential returns per unit of risk. Kogeneracja SA is currently generating about -0.17 per unit of volatility. If you would invest 5,840 in Kogeneracja SA on September 4, 2024 and sell it today you would lose (590.00) from holding Kogeneracja SA or give up 10.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Triton Development SA vs. Kogeneracja SA
Performance |
| Timeline |
| Triton Development |
| Kogeneracja SA |
Triton Development and Kogeneracja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triton Development and Kogeneracja
The main advantage of trading using opposite Triton Development and Kogeneracja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triton Development position performs unexpectedly, Kogeneracja 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 Kogeneracja will offset losses from the drop in Kogeneracja's long position.| Triton Development vs. Banco Santander SA | Triton Development vs. UniCredit SpA | Triton Development vs. CEZ as | Triton Development vs. Polski Koncern Naftowy |
| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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