Correlation Between Powszechny Zaklad and Stalprodukt
Can any of the company-specific risk be diversified away by investing in both Powszechny Zaklad and Stalprodukt 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 Powszechny Zaklad and Stalprodukt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Powszechny Zaklad Ubezpieczen and Stalprodukt SA, you can compare the effects of market volatilities on Powszechny Zaklad and Stalprodukt 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 Powszechny Zaklad with a short position of Stalprodukt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Powszechny Zaklad and Stalprodukt.
Diversification Opportunities for Powszechny Zaklad and Stalprodukt
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Powszechny and Stalprodukt is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Powszechny Zaklad Ubezpieczen and Stalprodukt SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stalprodukt SA and Powszechny Zaklad 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 Powszechny Zaklad Ubezpieczen are associated (or correlated) with Stalprodukt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stalprodukt SA has no effect on the direction of Powszechny Zaklad i.e., Powszechny Zaklad and Stalprodukt go up and down completely randomly.
Pair Corralation between Powszechny Zaklad and Stalprodukt
Assuming the 90 days trading horizon Powszechny Zaklad is expected to generate 21.62 times less return on investment than Stalprodukt. In addition to that, Powszechny Zaklad is 1.34 times more volatile than Stalprodukt SA. It trades about 0.0 of its total potential returns per unit of risk. Stalprodukt SA is currently generating about 0.01 per unit of volatility. If you would invest 21,450 in Stalprodukt SA on September 24, 2024 and sell it today you would earn a total of 250.00 from holding Stalprodukt SA or generate 1.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Powszechny Zaklad Ubezpieczen vs. Stalprodukt SA
Performance |
Timeline |
Powszechny Zaklad |
Stalprodukt SA |
Powszechny Zaklad and Stalprodukt Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Powszechny Zaklad and Stalprodukt
The main advantage of trading using opposite Powszechny Zaklad and Stalprodukt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Powszechny Zaklad position performs unexpectedly, Stalprodukt 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 Stalprodukt will offset losses from the drop in Stalprodukt's long position.Powszechny Zaklad vs. CEZ as | Powszechny Zaklad vs. X Trade Brokers | Powszechny Zaklad vs. Biztech Konsulting SA | Powszechny Zaklad vs. Dino Polska SA |
Stalprodukt vs. Biztech Konsulting SA | Stalprodukt vs. Intersport Polska SA | Stalprodukt vs. Centrum Finansowe Banku | Stalprodukt vs. Dino Polska SA |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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