Correlation Between Jastrzebska Spotka and Altustfi

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

By analyzing existing cross correlation between Jastrzebska Spotka Weglowa and Altustfi, you can compare the effects of market volatilities on Jastrzebska Spotka and Altustfi 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 Jastrzebska Spotka with a short position of Altustfi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jastrzebska Spotka and Altustfi.

Diversification Opportunities for Jastrzebska Spotka and Altustfi

-0.05

Correlation Coefficient

Jastrzebska Spotka  Altustfi

Good diversification

The 3 months correlation between Jastrzebska and Altustfi is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jastrzebska Spotka Weglowa and Altustfi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altustfi and Jastrzebska Spotka 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 Jastrzebska Spotka Weglowa are associated (or correlated) with Altustfi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altustfi has no effect on the direction of Jastrzebska Spotka i.e., Jastrzebska Spotka and Altustfi go up and down completely randomly.

Pair Corralation between Jastrzebska Spotka and Altustfi

Assuming the 90 days trading horizon Jastrzebska Spotka Weglowa is expected to generate 0.92 times more return on investment than Altustfi. However, Jastrzebska Spotka Weglowa is 1.08 times less risky than Altustfi. It trades about 0.02 of its potential returns per unit of risk. Altustfi is currently generating about -0.1 per unit of risk. If you would invest  2,552  in Jastrzebska Spotka Weglowa on November 29, 2024 and sell it today you would earn a total of  48.00  from holding Jastrzebska Spotka Weglowa or generate 1.88% return on investment over 90 days.

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

Jastrzebska Spotka Weglowa  vs.  Altustfi

Jastrzebska Spotka

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jastrzebska Spotka Weglowa are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Jastrzebska Spotka is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Altustfi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Altustfi 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 March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Jastrzebska Spotka and Altustfi

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

The idea behind Jastrzebska Spotka Weglowa and Altustfi 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.