Correlation Between Comba Telecom and Polski Koncern

Can any of the company-specific risk be diversified away by investing in both Comba Telecom 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 Comba Telecom and Polski Koncern into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Comba Telecom Systems and Polski Koncern Naftowy, you can compare the effects of market volatilities on Comba Telecom 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 Comba Telecom with a short position of Polski Koncern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comba Telecom and Polski Koncern.

Diversification Opportunities for Comba Telecom and Polski Koncern

0.0

Correlation Coefficient

Comba Telecom  Polski Koncern

Pay attention - limited upside

The 3 months correlation between Comba and Polski is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Comba Telecom Systems 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 Comba Telecom 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 Comba Telecom Systems 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 Comba Telecom i.e., Comba Telecom and Polski Koncern go up and down completely randomly.

Pair Corralation between Comba Telecom and Polski Koncern

Assuming the 90 days trading horizon Comba Telecom Systems is expected to generate 1.98 times more return on investment than Polski Koncern. However, Comba Telecom is 1.98 times more volatile than Polski Koncern Naftowy. It trades about 0.02 of its potential returns per unit of risk. Polski Koncern Naftowy is currently generating about -0.04 per unit of risk. If you would invest  12.00  in Comba Telecom Systems on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Comba Telecom Systems or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.44%
Values	Daily Returns

Comba Telecom Systems  vs.  Polski Koncern Naftowy

Comba Telecom Systems

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Comba Telecom Systems are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Comba Telecom may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Polski Koncern Naftowy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Polski Koncern Naftowy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Comba Telecom and Polski Koncern

The main advantage of trading using opposite Comba Telecom and Polski Koncern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comba Telecom 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.

The idea behind Comba Telecom Systems and Polski Koncern Naftowy 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.