Correlation Between Adris Grupa and INA Industrija

Can any of the company-specific risk be diversified away by investing in both Adris Grupa and INA Industrija 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 Adris Grupa and INA Industrija into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Adris Grupa dd and INA Industrija Nafte dd, you can compare the effects of market volatilities on Adris Grupa and INA Industrija 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 Adris Grupa with a short position of INA Industrija. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adris Grupa and INA Industrija.

Diversification Opportunities for Adris Grupa and INA Industrija

0.2

Correlation Coefficient

Adris Grupa  INA Industrija

Modest diversification

The 3 months correlation between Adris and INA is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Adris Grupa dd and INA Industrija Nafte dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INA Industrija Nafte and Adris Grupa 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 Adris Grupa dd are associated (or correlated) with INA Industrija. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INA Industrija Nafte has no effect on the direction of Adris Grupa i.e., Adris Grupa and INA Industrija go up and down completely randomly.

Pair Corralation between Adris Grupa and INA Industrija

Assuming the 90 days trading horizon Adris Grupa dd is expected to generate 0.93 times more return on investment than INA Industrija. However, Adris Grupa dd is 1.08 times less risky than INA Industrija. It trades about 0.15 of its potential returns per unit of risk. INA Industrija Nafte dd is currently generating about 0.07 per unit of risk. If you would invest  8,000  in Adris Grupa dd on December 29, 2024 and sell it today you would earn a total of  900.00  from holding Adris Grupa dd or generate 11.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	70.45%
Values	Daily Returns

Adris Grupa dd  vs.  INA Industrija Nafte dd

Adris Grupa dd

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Adris Grupa dd are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Adris Grupa unveiled solid returns over the last few months and may actually be approaching a breakup point.

INA Industrija Nafte

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in INA Industrija Nafte dd are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, INA Industrija may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Adris Grupa and INA Industrija

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

The idea behind Adris Grupa dd and INA Industrija Nafte dd 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.