Correlation Between UniCredit SpA and Kino Polska
Can any of the company-specific risk be diversified away by investing in both UniCredit SpA 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 UniCredit SpA and Kino Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UniCredit SpA and Kino Polska TV, you can compare the effects of market volatilities on UniCredit SpA 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 UniCredit SpA with a short position of Kino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of UniCredit SpA and Kino Polska.
Diversification Opportunities for UniCredit SpA and Kino Polska
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UniCredit and Kino is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding UniCredit SpA 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 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 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 UniCredit SpA i.e., UniCredit SpA and Kino Polska go up and down completely randomly.
Pair Corralation between UniCredit SpA and Kino Polska
Assuming the 90 days trading horizon UniCredit SpA is expected to under-perform the Kino Polska. In addition to that, UniCredit SpA is 1.1 times more volatile than Kino Polska TV. It trades about -0.33 of its total potential returns per unit of risk. Kino Polska TV is currently generating about 0.3 per unit of volatility. If you would invest 1,760 in Kino Polska TV on September 3, 2024 and sell it today you would earn a total of 235.00 from holding Kino Polska TV or generate 13.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.0% |
| Values | Daily Returns |
UniCredit SpA vs. Kino Polska TV
Performance |
| Timeline |
| UniCredit SpA |
| Kino Polska TV |
UniCredit SpA and Kino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UniCredit SpA and Kino Polska
The main advantage of trading using opposite UniCredit SpA and Kino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UniCredit SpA 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.| UniCredit SpA vs. Gamedust SA | UniCredit SpA vs. Mercator Medical SA | UniCredit SpA vs. Ultimate Games SA | UniCredit SpA vs. Quantum Software 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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