Correlation Between Zagrebacka Banka and Atlantic Grupa
Can any of the company-specific risk be diversified away by investing in both Zagrebacka Banka and Atlantic 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 Atlantic 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 Atlantic Grupa dd, you can compare the effects of market volatilities on Zagrebacka Banka and Atlantic 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 Atlantic Grupa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zagrebacka Banka and Atlantic Grupa.
Diversification Opportunities for Zagrebacka Banka and Atlantic Grupa
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zagrebacka and Atlantic is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Zagrebacka Banka dd and Atlantic Grupa dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic 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 Atlantic Grupa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Grupa dd has no effect on the direction of Zagrebacka Banka i.e., Zagrebacka Banka and Atlantic Grupa go up and down completely randomly.
Pair Corralation between Zagrebacka Banka and Atlantic Grupa
Assuming the 90 days trading horizon Zagrebacka Banka dd is expected to generate 1.69 times more return on investment than Atlantic Grupa. However, Zagrebacka Banka is 1.69 times more volatile than Atlantic Grupa dd. It trades about 0.4 of its potential returns per unit of risk. Atlantic Grupa dd is currently generating about -0.1 per unit of risk. If you would invest 2,190 in Zagrebacka Banka dd on September 12, 2024 and sell it today you would earn a total of 310.00 from holding Zagrebacka Banka dd or generate 14.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Zagrebacka Banka dd vs. Atlantic Grupa dd
Performance |
| Timeline |
| Zagrebacka Banka |
| Atlantic Grupa dd |
Zagrebacka Banka and Atlantic Grupa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zagrebacka Banka and Atlantic Grupa
The main advantage of trading using opposite Zagrebacka Banka and Atlantic Grupa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zagrebacka Banka position performs unexpectedly, Atlantic 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 Atlantic Grupa will offset losses from the drop in Atlantic Grupa's long position.| Zagrebacka Banka vs. Dalekovod dd | Zagrebacka Banka vs. Institut IGH dd | Zagrebacka Banka vs. Podravka Prehrambena Industrija |
| Atlantic Grupa vs. Dalekovod dd | Atlantic Grupa vs. Institut IGH dd | Atlantic Grupa vs. Jadroplov dd | Atlantic Grupa vs. Zagrebacka Banka 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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