Correlation Between TEN SQUARE and Bank Polska

Can any of the company-specific risk be diversified away by investing in both TEN SQUARE and Bank Polska 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 TEN SQUARE and Bank Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TEN SQUARE GAMES and Bank Polska Kasa, you can compare the effects of market volatilities on TEN SQUARE and Bank Polska 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 TEN SQUARE with a short position of Bank Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and Bank Polska.

Diversification Opportunities for TEN SQUARE and Bank Polska

0.5

Correlation Coefficient

TEN SQUARE  Bank Polska

Very weak diversification

The 3 months correlation between TEN and Bank is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and Bank Polska Kasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Polska Kasa and TEN SQUARE 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 TEN SQUARE GAMES are associated (or correlated) with Bank Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Polska Kasa has no effect on the direction of TEN SQUARE i.e., TEN SQUARE and Bank Polska go up and down completely randomly.

Pair Corralation between TEN SQUARE and Bank Polska

Assuming the 90 days trading horizon TEN SQUARE GAMES is expected to under-perform the Bank Polska. In addition to that, TEN SQUARE is 1.21 times more volatile than Bank Polska Kasa. It trades about -0.04 of its total potential returns per unit of risk. Bank Polska Kasa is currently generating about 0.07 per unit of volatility. If you would invest  8,155  in Bank Polska Kasa on October 11, 2024 and sell it today you would earn a total of  6,250  from holding Bank Polska Kasa or generate 76.64% return on investment over 90 days.

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

TEN SQUARE GAMES  vs.  Bank Polska Kasa

TEN SQUARE GAMES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TEN SQUARE GAMES has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Bank Polska Kasa

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bank Polska Kasa has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Bank Polska 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 TEN SQUARE and Bank Polska

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

The idea behind TEN SQUARE GAMES and Bank Polska Kasa 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.