Correlation Between Komercni Banka and CTP NV
Can any of the company-specific risk be diversified away by investing in both Komercni Banka and CTP NV 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 Komercni Banka and CTP NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komercni Banka AS and CTP NV, you can compare the effects of market volatilities on Komercni Banka and CTP NV 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 Komercni Banka with a short position of CTP NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and CTP NV.
Diversification Opportunities for Komercni Banka and CTP NV
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Komercni and CTP is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka AS and CTP NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTP NV and Komercni 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 Komercni Banka AS are associated (or correlated) with CTP NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTP NV has no effect on the direction of Komercni Banka i.e., Komercni Banka and CTP NV go up and down completely randomly.
Pair Corralation between Komercni Banka and CTP NV
Assuming the 90 days trading horizon Komercni Banka AS is expected to generate 0.49 times more return on investment than CTP NV. However, Komercni Banka AS is 2.02 times less risky than CTP NV. It trades about 0.21 of its potential returns per unit of risk. CTP NV is currently generating about -0.09 per unit of risk. If you would invest 76,900 in Komercni Banka AS on September 19, 2024 and sell it today you would earn a total of 8,100 from holding Komercni Banka AS or generate 10.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Komercni Banka AS vs. CTP NV
Performance |
Timeline |
Komercni Banka AS |
CTP NV |
Komercni Banka and CTP NV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Komercni Banka and CTP NV
The main advantage of trading using opposite Komercni Banka and CTP NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka position performs unexpectedly, CTP NV 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 CTP NV will offset losses from the drop in CTP NV's long position.Komercni Banka vs. Cez AS | Komercni Banka vs. Prabos Plus as | Komercni Banka vs. HARDWARIO as | Komercni Banka vs. Kofola CeskoSlovensko as |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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