Correlation Between Polen Us and Polen Us
Can any of the company-specific risk be diversified away by investing in both Polen Us and Polen Us 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 Polen Us and Polen Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polen Small and Polen Smid, you can compare the effects of market volatilities on Polen Us and Polen Us 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 Polen Us with a short position of Polen Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polen Us and Polen Us.
Diversification Opportunities for Polen Us and Polen Us
Almost no diversification
The 3 months correlation between Polen and Polen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Polen Small and Polen Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen Smid and Polen Us 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 Polen Small are associated (or correlated) with Polen Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen Smid has no effect on the direction of Polen Us i.e., Polen Us and Polen Us go up and down completely randomly.
Pair Corralation between Polen Us and Polen Us
Assuming the 90 days horizon Polen Small is expected to generate 1.06 times more return on investment than Polen Us. However, Polen Us is 1.06 times more volatile than Polen Smid. It trades about -0.09 of its potential returns per unit of risk. Polen Smid is currently generating about -0.13 per unit of risk. If you would invest 1,472 in Polen Small on December 28, 2024 and sell it today you would lose (112.00) from holding Polen Small or give up 7.61% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.36% |
Values | Daily Returns |
Polen Small vs. Polen Smid
Performance |
Timeline |
Polen Small |
Polen Smid |
Polen Us and Polen Us Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Polen Us and Polen Us
The main advantage of trading using opposite Polen Us and Polen Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polen Us position performs unexpectedly, Polen Us 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 Polen Us will offset losses from the drop in Polen Us' long position.Polen Us vs. Allianzgi International Small Cap | Polen Us vs. Ashmore Emerging Markets | Polen Us vs. Lsv Small Cap | Polen Us vs. Short Small Cap Profund |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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