Correlation Between PX Prague and BIST Electricity
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By analyzing existing cross correlation between PX Prague Stock and BIST Electricity, you can compare the effects of market volatilities on PX Prague and BIST Electricity 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 PX Prague with a short position of BIST Electricity. Check out your portfolio center. Please also check ongoing floating volatility patterns of PX Prague and BIST Electricity.
Diversification Opportunities for PX Prague and BIST Electricity
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PX Prague and BIST is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PX Prague Stock and BIST Electricity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIST Electricity and PX Prague 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 PX Prague Stock are associated (or correlated) with BIST Electricity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIST Electricity has no effect on the direction of PX Prague i.e., PX Prague and BIST Electricity go up and down completely randomly.
Pair Corralation between PX Prague and BIST Electricity
Assuming the 90 days trading horizon PX Prague is expected to generate 10.42 times less return on investment than BIST Electricity. But when comparing it to its historical volatility, PX Prague Stock is 3.72 times less risky than BIST Electricity. It trades about 0.19 of its potential returns per unit of risk. BIST Electricity is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 52,440 in BIST Electricity on February 4, 2024 and sell it today you would earn a total of 8,652 from holding BIST Electricity or generate 16.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 85.71% |
Values | Daily Returns |
PX Prague Stock vs. BIST Electricity
Performance |
Timeline |
PX Prague and BIST Electricity Volatility Contrast
Predicted Return Density |
Returns |
PX Prague Stock
Pair trading matchups for PX Prague
BIST Electricity
Pair trading matchups for BIST Electricity
Pair Trading with PX Prague and BIST Electricity
The main advantage of trading using opposite PX Prague and BIST Electricity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PX Prague position performs unexpectedly, BIST Electricity 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 BIST Electricity will offset losses from the drop in BIST Electricity's long position.PX Prague vs. Komercni Banka AS | PX Prague vs. Erste Group Bank | PX Prague vs. Raiffeisen Bank International | PX Prague vs. UNIQA Insurance Group |
BIST Electricity vs. Koza Anadolu Metal | BIST Electricity vs. Cuhadaroglu Metal Sanayi | BIST Electricity vs. ICBC Turkey Bank | BIST Electricity vs. Gentas Genel Metal |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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