Correlation Between Zagrebacka Banka and KRA Dd
Can any of the company-specific risk be diversified away by investing in both Zagrebacka Banka and KRA Dd 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 KRA Dd 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 KRA dd, you can compare the effects of market volatilities on Zagrebacka Banka and KRA Dd 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 KRA Dd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zagrebacka Banka and KRA Dd.
Diversification Opportunities for Zagrebacka Banka and KRA Dd
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zagrebacka and KRA is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Zagrebacka Banka dd and KRA dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRA 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 KRA Dd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRA dd has no effect on the direction of Zagrebacka Banka i.e., Zagrebacka Banka and KRA Dd go up and down completely randomly.
Pair Corralation between Zagrebacka Banka and KRA Dd
Assuming the 90 days trading horizon Zagrebacka Banka dd is expected to generate 0.18 times more return on investment than KRA Dd. However, Zagrebacka Banka dd is 5.68 times less risky than KRA Dd. It trades about 0.38 of its potential returns per unit of risk. KRA dd is currently generating about -0.21 per unit of risk. If you would invest 2,300 in Zagrebacka Banka dd on September 15, 2024 and sell it today you would earn a total of 220.00 from holding Zagrebacka Banka dd or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 23.81% |
| Values | Daily Returns |
Zagrebacka Banka dd vs. KRA dd
Performance |
| Timeline |
| Zagrebacka Banka |
| KRA dd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zagrebacka Banka and KRA Dd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zagrebacka Banka and KRA Dd
The main advantage of trading using opposite Zagrebacka Banka and KRA Dd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zagrebacka Banka position performs unexpectedly, KRA Dd 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 KRA Dd will offset losses from the drop in KRA Dd'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 |
| KRA Dd vs. Dalekovod dd | KRA Dd vs. Institut IGH dd | KRA Dd vs. Jadroplov dd | KRA Dd 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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