Correlation Between Gielda Praw and Logintrade
Can any of the company-specific risk be diversified away by investing in both Gielda Praw and Logintrade 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 Gielda Praw and Logintrade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gielda Praw Majatkowych and Logintrade SA, you can compare the effects of market volatilities on Gielda Praw and Logintrade 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 Gielda Praw with a short position of Logintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gielda Praw and Logintrade.
Diversification Opportunities for Gielda Praw and Logintrade
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gielda and Logintrade is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gielda Praw Majatkowych and Logintrade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logintrade SA and Gielda Praw 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 Gielda Praw Majatkowych are associated (or correlated) with Logintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logintrade SA has no effect on the direction of Gielda Praw i.e., Gielda Praw and Logintrade go up and down completely randomly.
Pair Corralation between Gielda Praw and Logintrade
Assuming the 90 days trading horizon Gielda Praw Majatkowych is expected to generate 0.28 times more return on investment than Logintrade. However, Gielda Praw Majatkowych is 3.58 times less risky than Logintrade. It trades about 0.24 of its potential returns per unit of risk. Logintrade SA is currently generating about -0.05 per unit of risk. If you would invest 884.00 in Gielda Praw Majatkowych on December 4, 2024 and sell it today you would earn a total of 78.00 from holding Gielda Praw Majatkowych or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
Gielda Praw Majatkowych vs. Logintrade SA
Performance |
| Timeline |
| Gielda Praw Majatkowych |
| Logintrade SA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Gielda Praw and Logintrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gielda Praw and Logintrade
The main advantage of trading using opposite Gielda Praw and Logintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gielda Praw position performs unexpectedly, Logintrade 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 Logintrade will offset losses from the drop in Logintrade's long position.| Gielda Praw vs. Alior Bank SA | Gielda Praw vs. PMPG Polskie Media | Gielda Praw vs. Fintech SA | Gielda Praw vs. Santander Bank Polska |
| Logintrade vs. SOFTWARE MANSION SPOLKA | Logintrade vs. LSI Software SA | Logintrade vs. Play2Chill SA | Logintrade vs. UniCredit SpA |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |