Correlation Between Zagrebacka Banka and Adris Grupa
Can any of the company-specific risk be diversified away by investing in both Zagrebacka Banka and Adris Grupa 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 Zagrebacka Banka and Adris Grupa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zagrebacka Banka dd and Adris Grupa dd, you can compare the effects of market volatilities on Zagrebacka Banka and Adris Grupa 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 Zagrebacka Banka with a short position of Adris Grupa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zagrebacka Banka and Adris Grupa.
Diversification Opportunities for Zagrebacka Banka and Adris Grupa
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zagrebacka and Adris is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Zagrebacka Banka dd and Adris Grupa dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adris Grupa dd and Zagrebacka Banka 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 Zagrebacka Banka dd are associated (or correlated) with Adris Grupa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adris Grupa dd has no effect on the direction of Zagrebacka Banka i.e., Zagrebacka Banka and Adris Grupa go up and down completely randomly.
Pair Corralation between Zagrebacka Banka and Adris Grupa
Assuming the 90 days trading horizon Zagrebacka Banka is expected to generate 1.11 times less return on investment than Adris Grupa. But when comparing it to its historical volatility, Zagrebacka Banka dd is 1.33 times less risky than Adris Grupa. It trades about 0.34 of its potential returns per unit of risk. Adris Grupa dd is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 7,700 in Adris Grupa dd on September 13, 2024 and sell it today you would earn a total of 450.00 from holding Adris Grupa dd or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.9% |
| Values | Daily Returns |
Zagrebacka Banka dd vs. Adris Grupa dd
Performance |
| Timeline |
| Zagrebacka Banka |
| Adris Grupa dd |
Zagrebacka Banka and Adris Grupa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zagrebacka Banka and Adris Grupa
The main advantage of trading using opposite Zagrebacka Banka and Adris Grupa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zagrebacka Banka position performs unexpectedly, Adris Grupa 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 Adris Grupa will offset losses from the drop in Adris Grupa's long position.| Zagrebacka Banka vs. Hrvatska Postanska Banka | Zagrebacka Banka vs. AD Plastik dd | Zagrebacka Banka vs. Dalekovod dd | Zagrebacka Banka vs. Podravka Prehrambena Industrija |
| Adris Grupa vs. Adris Grupa dd | Adris Grupa vs. AD Plastik dd | Adris Grupa vs. Hrvatska Postanska Banka | Adris Grupa vs. Dalekovod dd |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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