Correlation Between Komercn Banka and Pembina Pipeline

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

By analyzing existing cross correlation between Komercn banka as and Pembina Pipeline Corp, you can compare the effects of market volatilities on Komercn Banka and Pembina Pipeline 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 Komercn Banka with a short position of Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercn Banka and Pembina Pipeline.

Diversification Opportunities for Komercn Banka and Pembina Pipeline

-0.8

Correlation Coefficient

Komercn Banka  Pembina Pipeline

Pay attention - limited upside

The 3 months correlation between Komercn and Pembina is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Komercn banka as and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline Corp and Komercn Banka 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 Komercn banka as are associated (or correlated) with Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of Komercn Banka i.e., Komercn Banka and Pembina Pipeline go up and down completely randomly.

Pair Corralation between Komercn Banka and Pembina Pipeline

Assuming the 90 days trading horizon Komercn banka as is expected to generate 0.98 times more return on investment than Pembina Pipeline. However, Komercn banka as is 1.02 times less risky than Pembina Pipeline. It trades about 0.12 of its potential returns per unit of risk. Pembina Pipeline Corp is currently generating about -0.09 per unit of risk. If you would invest  3,192  in Komercn banka as on October 23, 2024 and sell it today you would earn a total of  268.00  from holding Komercn banka as or generate 8.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.33%
Values	Daily Returns

Komercn banka as  vs.  Pembina Pipeline Corp

Komercn banka as

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Komercn banka as are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Komercn Banka may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pembina Pipeline Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pembina Pipeline Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady 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 Komercn Banka and Pembina Pipeline

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

The idea behind Komercn banka as and Pembina Pipeline Corp 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.

Check out your portfolio center.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.