Correlation Between WAWEL SA and Intersport Polska
Can any of the company-specific risk be diversified away by investing in both WAWEL SA and Intersport 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 WAWEL SA and Intersport Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WAWEL SA and Intersport Polska SA, you can compare the effects of market volatilities on WAWEL SA and Intersport 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 WAWEL SA with a short position of Intersport Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of WAWEL SA and Intersport Polska.
Diversification Opportunities for WAWEL SA and Intersport Polska
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WAWEL and Intersport is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding WAWEL SA and Intersport Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intersport Polska and WAWEL SA 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 WAWEL SA are associated (or correlated) with Intersport Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intersport Polska has no effect on the direction of WAWEL SA i.e., WAWEL SA and Intersport Polska go up and down completely randomly.
Pair Corralation between WAWEL SA and Intersport Polska
Assuming the 90 days trading horizon WAWEL SA is expected to generate 0.4 times more return on investment than Intersport Polska. However, WAWEL SA is 2.5 times less risky than Intersport Polska. It trades about -0.04 of its potential returns per unit of risk. Intersport Polska SA is currently generating about -0.03 per unit of risk. If you would invest 66,463 in WAWEL SA on September 3, 2024 and sell it today you would lose (5,863) from holding WAWEL SA or give up 8.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WAWEL SA vs. Intersport Polska SA
Performance |
| Timeline |
| WAWEL SA |
| Intersport Polska |
WAWEL SA and Intersport Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WAWEL SA and Intersport Polska
The main advantage of trading using opposite WAWEL SA and Intersport Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WAWEL SA position performs unexpectedly, Intersport 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 Intersport Polska will offset losses from the drop in Intersport Polska's long position.| WAWEL SA vs. Banco Santander SA | WAWEL SA vs. UniCredit SpA | WAWEL SA vs. CEZ as | WAWEL SA vs. Polski Koncern Naftowy |
| Intersport Polska vs. Asseco Business Solutions | Intersport Polska vs. Detalion Games SA | Intersport Polska vs. Kogeneracja SA | Intersport Polska vs. Asseco South Eastern |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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