Correlation Between MT Bank and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both MT Bank and Komercni Banka 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 MT Bank and Komercni Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MT Bank Corp and Komercni Banka, you can compare the effects of market volatilities on MT Bank and Komercni Banka 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 MT Bank with a short position of Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of MT Bank and Komercni Banka.
Diversification Opportunities for MT Bank and Komercni Banka
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0JW2 and Komercni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MT Bank Corp and Komercni Banka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka and MT Bank 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 MT Bank Corp are associated (or correlated) with Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka has no effect on the direction of MT Bank i.e., MT Bank and Komercni Banka go up and down completely randomly.
Pair Corralation between MT Bank and Komercni Banka
Assuming the 90 days trading horizon MT Bank Corp is expected to generate 185.26 times more return on investment than Komercni Banka. However, MT Bank is 185.26 times more volatile than Komercni Banka. It trades about 0.13 of its potential returns per unit of risk. Komercni Banka is currently generating about 0.06 per unit of risk. If you would invest 12,916 in MT Bank Corp on September 2, 2024 and sell it today you would earn a total of 9,083 from holding MT Bank Corp or generate 70.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.0% |
| Values | Daily Returns |
MT Bank Corp vs. Komercni Banka
Performance |
| Timeline |
| MT Bank Corp |
| Komercni Banka |
MT Bank and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MT Bank and Komercni Banka
The main advantage of trading using opposite MT Bank and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MT Bank position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka's long position.| MT Bank vs. Cizzle Biotechnology Holdings | MT Bank vs. AfriTin Mining | MT Bank vs. GoldMining | MT Bank vs. Capital Drilling |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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