Correlation Between Alior Bank and MXP
Can any of the company-specific risk be diversified away by investing in both Alior Bank and MXP 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 Alior Bank and MXP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alior Bank SA and MXP, you can compare the effects of market volatilities on Alior Bank and MXP 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 Alior Bank with a short position of MXP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alior Bank and MXP.
Diversification Opportunities for Alior Bank and MXP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alior and MXP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alior Bank SA and MXP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MXP and Alior 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 Alior Bank SA are associated (or correlated) with MXP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MXP has no effect on the direction of Alior Bank i.e., Alior Bank and MXP go up and down completely randomly.
Pair Corralation between Alior Bank and MXP
If you would invest 8,752 in Alior Bank SA on August 28, 2024 and sell it today you would earn a total of 518.00 from holding Alior Bank SA or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Alior Bank SA vs. MXP
Performance |
| Timeline |
| Alior Bank SA |
| MXP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alior Bank and MXP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alior Bank and MXP
The main advantage of trading using opposite Alior Bank and MXP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alior Bank position performs unexpectedly, MXP 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 MXP will offset losses from the drop in MXP's long position.| Alior Bank vs. Banco Santander SA | Alior Bank vs. Asseco Business Solutions | Alior Bank vs. Detalion Games SA | Alior Bank vs. Asseco South Eastern |
| MXP vs. Alior Bank SA | MXP vs. MCI Management SA | MXP vs. Intersport Polska SA | MXP vs. Echo Investment SA |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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