Correlation Between Hrvatska Postanska and Saponia Dd

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

By analyzing existing cross correlation between Hrvatska Postanska Banka and Saponia Dd, you can compare the effects of market volatilities on Hrvatska Postanska and Saponia Dd 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 Hrvatska Postanska with a short position of Saponia Dd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hrvatska Postanska and Saponia Dd.

Diversification Opportunities for Hrvatska Postanska and Saponia Dd

0.0

Correlation Coefficient

Hrvatska Postanska  Saponia Dd

Pay attention - limited upside

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

Pair Corralation between Hrvatska Postanska and Saponia Dd

If you would invest  29,400  in Hrvatska Postanska Banka on September 27, 2024 and sell it today you would earn a total of  1,600  from holding Hrvatska Postanska Banka or generate 5.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Hrvatska Postanska Banka  vs.  Saponia Dd

Hrvatska Postanska Banka

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hrvatska Postanska Banka are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Hrvatska Postanska exhibited solid returns over the last few months and may actually be approaching a breakup point.

Saponia Dd

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saponia Dd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Saponia Dd is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Hrvatska Postanska and Saponia Dd

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

The idea behind Hrvatska Postanska Banka and Saponia 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.