Correlation Between Ultimate Games and Bank Polska
Can any of the company-specific risk be diversified away by investing in both Ultimate Games and Bank 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 Ultimate Games and Bank Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultimate Games SA and Bank Polska Kasa, you can compare the effects of market volatilities on Ultimate Games and Bank 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 Ultimate Games with a short position of Bank Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimate Games and Bank Polska.
Diversification Opportunities for Ultimate Games and Bank Polska
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ultimate and Bank is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ultimate Games SA and Bank Polska Kasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Polska Kasa and Ultimate Games 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 Ultimate Games SA are associated (or correlated) with Bank Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Polska Kasa has no effect on the direction of Ultimate Games i.e., Ultimate Games and Bank Polska go up and down completely randomly.
Pair Corralation between Ultimate Games and Bank Polska
Assuming the 90 days trading horizon Ultimate Games SA is expected to generate 0.29 times more return on investment than Bank Polska. However, Ultimate Games SA is 3.39 times less risky than Bank Polska. It trades about -0.06 of its potential returns per unit of risk. Bank Polska Kasa is currently generating about -0.03 per unit of risk. If you would invest 876.00 in Ultimate Games SA on August 31, 2024 and sell it today you would lose (8.00) from holding Ultimate Games SA or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultimate Games SA vs. Bank Polska Kasa
Performance |
| Timeline |
| Ultimate Games SA |
| Bank Polska Kasa |
Ultimate Games and Bank Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultimate Games and Bank Polska
The main advantage of trading using opposite Ultimate Games and Bank Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultimate Games position performs unexpectedly, Bank 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 Bank Polska will offset losses from the drop in Bank Polska's long position.| Ultimate Games vs. CD PROJEKT SA | Ultimate Games vs. PLAYWAY SA | Ultimate Games vs. TEN SQUARE GAMES | Ultimate Games vs. CI Games SA |
| Bank Polska vs. UniCredit SpA | Bank Polska vs. Santander Bank Polska | Bank Polska vs. Bank Handlowy w | Bank Polska vs. BNP Paribas Bank |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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