Correlation Between UniCredit SpA and PKP Cargo
Can any of the company-specific risk be diversified away by investing in both UniCredit SpA and PKP Cargo 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 PKP Cargo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UniCredit SpA and PKP Cargo SA, you can compare the effects of market volatilities on UniCredit SpA and PKP Cargo 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 PKP Cargo. Check out your portfolio center. Please also check ongoing floating volatility patterns of UniCredit SpA and PKP Cargo.
Diversification Opportunities for UniCredit SpA and PKP Cargo
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UniCredit and PKP is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding UniCredit SpA and PKP Cargo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKP Cargo 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 PKP Cargo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKP Cargo SA has no effect on the direction of UniCredit SpA i.e., UniCredit SpA and PKP Cargo go up and down completely randomly.
Pair Corralation between UniCredit SpA and PKP Cargo
Assuming the 90 days trading horizon UniCredit SpA is expected to generate 0.88 times more return on investment than PKP Cargo. However, UniCredit SpA is 1.14 times less risky than PKP Cargo. It trades about -0.24 of its potential returns per unit of risk. PKP Cargo SA is currently generating about -0.34 per unit of risk. If you would invest 17,240 in UniCredit SpA on August 30, 2024 and sell it today you would lose (1,814) from holding UniCredit SpA or give up 10.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
UniCredit SpA vs. PKP Cargo SA
Performance |
| Timeline |
| UniCredit SpA |
| PKP Cargo SA |
UniCredit SpA and PKP Cargo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UniCredit SpA and PKP Cargo
The main advantage of trading using opposite UniCredit SpA and PKP Cargo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UniCredit SpA position performs unexpectedly, PKP Cargo 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 PKP Cargo will offset losses from the drop in PKP Cargo's long position.| UniCredit SpA vs. 3R Games SA | UniCredit SpA vs. Enter Air SA | UniCredit SpA vs. Mercator Medical SA | UniCredit SpA vs. Baked Games SA |
| PKP Cargo vs. Banco Santander SA | PKP Cargo vs. UniCredit SpA | PKP Cargo vs. CEZ as | PKP Cargo 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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