Correlation Between Komercni Banka and Miton UK

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

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

Diversification Opportunities for Komercni Banka and Miton UK

0.0

Correlation Coefficient

Komercni Banka  Miton UK

Pay attention - limited upside

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

Pair Corralation between Komercni Banka and Miton UK

If you would invest  4,440  in Miton UK MicroCap on October 20, 2024 and sell it today you would earn a total of  100.00  from holding Miton UK MicroCap or generate 2.25% return on investment over 90 days.

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

Komercni Banka  vs.  Miton UK MicroCap

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

Miton UK MicroCap

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Miton UK MicroCap are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Miton UK is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Komercni Banka and Miton UK

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

The idea behind Komercni Banka and Miton UK MicroCap 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.