Correlation Between Zagrebacka Banka and Jadroplov
Can any of the company-specific risk be diversified away by investing in both Zagrebacka Banka and Jadroplov 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 Jadroplov 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 Jadroplov dd, you can compare the effects of market volatilities on Zagrebacka Banka and Jadroplov 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 Jadroplov. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zagrebacka Banka and Jadroplov.
Diversification Opportunities for Zagrebacka Banka and Jadroplov
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zagrebacka and Jadroplov is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Zagrebacka Banka dd and Jadroplov dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jadroplov 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 Jadroplov. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jadroplov dd has no effect on the direction of Zagrebacka Banka i.e., Zagrebacka Banka and Jadroplov go up and down completely randomly.
Pair Corralation between Zagrebacka Banka and Jadroplov
Assuming the 90 days trading horizon Zagrebacka Banka dd is expected to generate 0.46 times more return on investment than Jadroplov. However, Zagrebacka Banka dd is 2.19 times less risky than Jadroplov. It trades about 0.15 of its potential returns per unit of risk. Jadroplov dd is currently generating about 0.0 per unit of risk. If you would invest 852.00 in Zagrebacka Banka dd on September 13, 2024 and sell it today you would earn a total of 1,658 from holding Zagrebacka Banka dd or generate 194.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 71.19% |
| Values | Daily Returns |
Zagrebacka Banka dd vs. Jadroplov dd
Performance |
| Timeline |
| Zagrebacka Banka |
| Jadroplov dd |
Zagrebacka Banka and Jadroplov Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zagrebacka Banka and Jadroplov
The main advantage of trading using opposite Zagrebacka Banka and Jadroplov positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zagrebacka Banka position performs unexpectedly, Jadroplov 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 Jadroplov will offset losses from the drop in Jadroplov's long position.| Zagrebacka Banka vs. Dalekovod dd | Zagrebacka Banka vs. Institut IGH dd | Zagrebacka Banka vs. Podravka Prehrambena Industrija |
| Jadroplov vs. AD Plastik dd | Jadroplov vs. Hrvatska Postanska Banka | Jadroplov vs. Dalekovod dd | Jadroplov vs. Podravka Prehrambena Industrija |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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