Correlation Between Adiuvo Investment and Bank Polska

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

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

Diversification Opportunities for Adiuvo Investment and Bank Polska

-0.69

Correlation Coefficient

Adiuvo Investment  Bank Polska

Excellent diversification

The 3 months correlation between Adiuvo and Bank is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Adiuvo Investment SA 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 Adiuvo Investment 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 Adiuvo Investment SA 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 Adiuvo Investment i.e., Adiuvo Investment and Bank Polska go up and down completely randomly.

Pair Corralation between Adiuvo Investment and Bank Polska

Assuming the 90 days trading horizon Adiuvo Investment SA is expected to under-perform the Bank Polska. In addition to that, Adiuvo Investment is 1.83 times more volatile than Bank Polska Kasa. It trades about -0.12 of its total potential returns per unit of risk. Bank Polska Kasa is currently generating about 0.12 per unit of volatility. If you would invest  17,312  in Bank Polska Kasa on April 24, 2025 and sell it today you would earn a total of  2,238  from holding Bank Polska Kasa or generate 12.93% return on investment over 90 days.

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

Adiuvo Investment SA  vs.  Bank Polska Kasa

Adiuvo Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Adiuvo Investment SA 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 August 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

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bank Polska Kasa are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Bank Polska reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Adiuvo Investment and Bank Polska

The main advantage of trading using opposite Adiuvo Investment and Bank Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adiuvo Investment 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 Adiuvo Investment SA 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.