Correlation Between Powszechny Zaklad and Polski Koncern
Can any of the company-specific risk be diversified away by investing in both Powszechny Zaklad and Polski Koncern 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 Powszechny Zaklad and Polski Koncern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Powszechny Zaklad Ubezpieczen and Polski Koncern Naftowy, you can compare the effects of market volatilities on Powszechny Zaklad and Polski Koncern 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 Powszechny Zaklad with a short position of Polski Koncern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Powszechny Zaklad and Polski Koncern.
Diversification Opportunities for Powszechny Zaklad and Polski Koncern
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Powszechny and Polski is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Powszechny Zaklad Ubezpieczen and Polski Koncern Naftowy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polski Koncern Naftowy and Powszechny Zaklad 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 Powszechny Zaklad Ubezpieczen are associated (or correlated) with Polski Koncern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polski Koncern Naftowy has no effect on the direction of Powszechny Zaklad i.e., Powszechny Zaklad and Polski Koncern go up and down completely randomly.
Pair Corralation between Powszechny Zaklad and Polski Koncern
Assuming the 90 days trading horizon Powszechny Zaklad Ubezpieczen is expected to generate 0.93 times more return on investment than Polski Koncern. However, Powszechny Zaklad Ubezpieczen is 1.08 times less risky than Polski Koncern. It trades about 0.08 of its potential returns per unit of risk. Polski Koncern Naftowy is currently generating about -0.15 per unit of risk. If you would invest 4,250 in Powszechny Zaklad Ubezpieczen on September 26, 2024 and sell it today you would earn a total of 323.00 from holding Powszechny Zaklad Ubezpieczen or generate 7.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Powszechny Zaklad Ubezpieczen vs. Polski Koncern Naftowy
Performance |
Timeline |
Powszechny Zaklad |
Polski Koncern Naftowy |
Powszechny Zaklad and Polski Koncern Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Powszechny Zaklad and Polski Koncern
The main advantage of trading using opposite Powszechny Zaklad and Polski Koncern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Powszechny Zaklad position performs unexpectedly, Polski Koncern 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 Polski Koncern will offset losses from the drop in Polski Koncern's long position.Powszechny Zaklad vs. CEZ as | Powszechny Zaklad vs. X Trade Brokers | Powszechny Zaklad vs. Biztech Konsulting SA | Powszechny Zaklad vs. Dino Polska SA |
Polski Koncern vs. Biztech Konsulting SA | Polski Koncern vs. CEZ as | Polski Koncern vs. X Trade Brokers | Polski Koncern vs. Powszechny Zaklad Ubezpieczen |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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