Correlation Between Jastrzebska Spotka and Examobile

Can any of the company-specific risk be diversified away by investing in both Jastrzebska Spotka and Examobile 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 Examobile 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 Examobile SA, you can compare the effects of market volatilities on Jastrzebska Spotka and Examobile 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 Examobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jastrzebska Spotka and Examobile.

Diversification Opportunities for Jastrzebska Spotka and Examobile

-0.4

Correlation Coefficient

Jastrzebska Spotka  Examobile

Very good diversification

The 3 months correlation between Jastrzebska and Examobile is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jastrzebska Spotka Weglowa and Examobile SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Examobile SA 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 Examobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Examobile SA has no effect on the direction of Jastrzebska Spotka i.e., Jastrzebska Spotka and Examobile go up and down completely randomly.

Pair Corralation between Jastrzebska Spotka and Examobile

Assuming the 90 days trading horizon Jastrzebska Spotka Weglowa is expected to generate 1.31 times more return on investment than Examobile. However, Jastrzebska Spotka is 1.31 times more volatile than Examobile SA. It trades about 0.12 of its potential returns per unit of risk. Examobile SA is currently generating about 0.03 per unit of risk. If you would invest  2,049  in Jastrzebska Spotka Weglowa on December 27, 2024 and sell it today you would earn a total of  422.00  from holding Jastrzebska Spotka Weglowa or generate 20.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	67.21%
Values	Daily Returns

Jastrzebska Spotka Weglowa  vs.  Examobile SA

Jastrzebska Spotka

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jastrzebska Spotka Weglowa are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Jastrzebska Spotka reported solid returns over the last few months and may actually be approaching a breakup point.

Examobile SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Examobile SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Examobile is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Jastrzebska Spotka and Examobile

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

The idea behind Jastrzebska Spotka Weglowa and Examobile SA 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.