Correlation Between Examobile and Poznanska Korporacja

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

By analyzing existing cross correlation between Examobile SA and Poznanska Korporacja Budowlana, you can compare the effects of market volatilities on Examobile and Poznanska Korporacja 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 Examobile with a short position of Poznanska Korporacja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Examobile and Poznanska Korporacja.

Diversification Opportunities for Examobile and Poznanska Korporacja

-0.18

Correlation Coefficient

Examobile  Poznanska Korporacja

Good diversification

The 3 months correlation between Examobile and Poznanska is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Examobile SA and Poznanska Korporacja Budowlana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poznanska Korporacja and Examobile 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 Examobile SA are associated (or correlated) with Poznanska Korporacja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poznanska Korporacja has no effect on the direction of Examobile i.e., Examobile and Poznanska Korporacja go up and down completely randomly.

Pair Corralation between Examobile and Poznanska Korporacja

Assuming the 90 days trading horizon Examobile SA is expected to under-perform the Poznanska Korporacja. In addition to that, Examobile is 1.84 times more volatile than Poznanska Korporacja Budowlana. It trades about -0.15 of its total potential returns per unit of risk. Poznanska Korporacja Budowlana is currently generating about -0.09 per unit of volatility. If you would invest  1,980  in Poznanska Korporacja Budowlana on October 22, 2024 and sell it today you would lose (230.00) from holding Poznanska Korporacja Budowlana or give up 11.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	43.86%
Values	Daily Returns

Examobile SA  vs.  Poznanska Korporacja Budowlana

Examobile SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Examobile SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Poznanska Korporacja

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Poznanska Korporacja Budowlana has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Examobile and Poznanska Korporacja

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

The idea behind Examobile SA and Poznanska Korporacja Budowlana 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.