Correlation Between UniCredit SpA and Kogeneracja
Can any of the company-specific risk be diversified away by investing in both UniCredit SpA 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 UniCredit SpA and Kogeneracja into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UniCredit SpA and Kogeneracja SA, you can compare the effects of market volatilities on UniCredit SpA 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 UniCredit SpA with a short position of Kogeneracja. Check out your portfolio center. Please also check ongoing floating volatility patterns of UniCredit SpA and Kogeneracja.
Diversification Opportunities for UniCredit SpA and Kogeneracja
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UniCredit and Kogeneracja is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding UniCredit SpA and Kogeneracja SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kogeneracja SA and UniCredit SpA 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 UniCredit SpA 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 UniCredit SpA i.e., UniCredit SpA and Kogeneracja go up and down completely randomly.
Pair Corralation between UniCredit SpA and Kogeneracja
Assuming the 90 days trading horizon UniCredit SpA is expected to under-perform the Kogeneracja. But the stock apears to be less risky and, when comparing its historical volatility, UniCredit SpA is 2.12 times less risky than Kogeneracja. The stock trades about -0.36 of its potential returns per unit of risk. The Kogeneracja SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,840 in Kogeneracja SA on September 3, 2024 and sell it today you would earn a total of 140.00 from holding Kogeneracja SA or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.0% |
| Values | Daily Returns |
UniCredit SpA vs. Kogeneracja SA
Performance |
| Timeline |
| UniCredit SpA |
| Kogeneracja SA |
UniCredit SpA and Kogeneracja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UniCredit SpA and Kogeneracja
The main advantage of trading using opposite UniCredit SpA and Kogeneracja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UniCredit SpA 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.| UniCredit SpA vs. Gamedust SA | UniCredit SpA vs. Mercator Medical SA | UniCredit SpA vs. Ultimate Games SA | UniCredit SpA vs. Quantum Software SA |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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