Correlation Between Polski Koncern and All In

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

By analyzing existing cross correlation between Polski Koncern Naftowy and All In Games, you can compare the effects of market volatilities on Polski Koncern and All In 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 Polski Koncern with a short position of All In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and All In.

Diversification Opportunities for Polski Koncern and All In

-0.36

Correlation Coefficient

Polski Koncern  All In

Very good diversification

The 3 months correlation between Polski and All is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy and All In Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All In Games and Polski Koncern 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 Polski Koncern Naftowy are associated (or correlated) with All In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All In Games has no effect on the direction of Polski Koncern i.e., Polski Koncern and All In go up and down completely randomly.

Pair Corralation between Polski Koncern and All In

Assuming the 90 days trading horizon Polski Koncern Naftowy is expected to generate 0.57 times more return on investment than All In. However, Polski Koncern Naftowy is 1.77 times less risky than All In. It trades about 0.21 of its potential returns per unit of risk. All In Games is currently generating about -0.05 per unit of risk. If you would invest  5,102  in Polski Koncern Naftowy on November 29, 2024 and sell it today you would earn a total of  1,077  from holding Polski Koncern Naftowy or generate 21.11% return on investment over 90 days.

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

Polski Koncern Naftowy  vs.  All In Games

Polski Koncern Naftowy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Polski Koncern Naftowy are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Polski Koncern reported solid returns over the last few months and may actually be approaching a breakup point.

All In Games

Risk-Adjusted Performance

Very Weak

Over the last 90 days All In Games has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Polski Koncern and All In

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

The idea behind Polski Koncern Naftowy and All In Games 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.