Correlation Between Komercni Banka and Celebrus Technologies

Can any of the company-specific risk be diversified away by investing in both Komercni Banka and Celebrus Technologies 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 Celebrus Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Komercni Banka and Celebrus Technologies plc, you can compare the effects of market volatilities on Komercni Banka and Celebrus Technologies 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 Celebrus Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and Celebrus Technologies.

Diversification Opportunities for Komercni Banka and Celebrus Technologies

0.0

Correlation Coefficient

Komercni Banka  Celebrus Technologies

Pay attention - limited upside

The 3 months correlation between Komercni and Celebrus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka and Celebrus Technologies plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celebrus Technologies plc 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 are associated (or correlated) with Celebrus Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celebrus Technologies plc has no effect on the direction of Komercni Banka i.e., Komercni Banka and Celebrus Technologies go up and down completely randomly.

Pair Corralation between Komercni Banka and Celebrus Technologies

If you would invest  53,400  in Komercni Banka on September 29, 2024 and sell it today you would earn a total of  0.00  from holding Komercni Banka or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Komercni Banka  vs.  Celebrus Technologies plc

Komercni Banka

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Komercni Banka has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Komercni Banka is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Celebrus Technologies plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celebrus Technologies plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Celebrus Technologies is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Komercni Banka and Celebrus Technologies

The main advantage of trading using opposite Komercni Banka and Celebrus Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka position performs unexpectedly, Celebrus Technologies 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 Celebrus Technologies will offset losses from the drop in Celebrus Technologies' long position.

The idea behind Komercni Banka and Celebrus Technologies plc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.