Correlation Between Mgame Corp and Polaris Office
Can any of the company-specific risk be diversified away by investing in both Mgame Corp and Polaris Office 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 Mgame Corp and Polaris Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mgame Corp and Polaris Office Corp, you can compare the effects of market volatilities on Mgame Corp and Polaris Office 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 Mgame Corp with a short position of Polaris Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mgame Corp and Polaris Office.
Diversification Opportunities for Mgame Corp and Polaris Office
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mgame and Polaris is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mgame Corp and Polaris Office Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polaris Office Corp and Mgame Corp 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 Mgame Corp are associated (or correlated) with Polaris Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polaris Office Corp has no effect on the direction of Mgame Corp i.e., Mgame Corp and Polaris Office go up and down completely randomly.
Pair Corralation between Mgame Corp and Polaris Office
Assuming the 90 days trading horizon Mgame Corp is expected to under-perform the Polaris Office. But the stock apears to be less risky and, when comparing its historical volatility, Mgame Corp is 2.57 times less risky than Polaris Office. The stock trades about -0.02 of its potential returns per unit of risk. The Polaris Office Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 146,200 in Polaris Office Corp on October 16, 2024 and sell it today you would earn a total of 434,800 from holding Polaris Office Corp or generate 297.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.22% |
| Values | Daily Returns |
Mgame Corp vs. Polaris Office Corp
Performance |
| Timeline |
| Mgame Corp |
| Polaris Office Corp |
Mgame Corp and Polaris Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mgame Corp and Polaris Office
The main advantage of trading using opposite Mgame Corp and Polaris Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mgame Corp position performs unexpectedly, Polaris Office 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 Polaris Office will offset losses from the drop in Polaris Office's long position.| Mgame Corp vs. DB Financial Investment | Mgame Corp vs. Korean Reinsurance Co | Mgame Corp vs. Eugene Technology CoLtd | Mgame Corp vs. Puloon Technology |
| Polaris Office vs. Dongil Metal Co | Polaris Office vs. MetaLabs Co | Polaris Office vs. ECSTELECOM Co | Polaris Office vs. Duksan Hi 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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