Correlation Between Aplisens and MBank SA
Can any of the company-specific risk be diversified away by investing in both Aplisens and MBank SA 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 Aplisens and MBank SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aplisens SA and mBank SA, you can compare the effects of market volatilities on Aplisens and MBank SA 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 Aplisens with a short position of MBank SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aplisens and MBank SA.
Diversification Opportunities for Aplisens and MBank SA
Poor diversification
The 3 months correlation between Aplisens and MBank is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aplisens SA and mBank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mBank SA and Aplisens 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 Aplisens SA are associated (or correlated) with MBank SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mBank SA has no effect on the direction of Aplisens i.e., Aplisens and MBank SA go up and down completely randomly.
Pair Corralation between Aplisens and MBank SA
Assuming the 90 days trading horizon Aplisens SA is expected to generate 0.98 times more return on investment than MBank SA. However, Aplisens SA is 1.02 times less risky than MBank SA. It trades about 0.02 of its potential returns per unit of risk. mBank SA is currently generating about -0.09 per unit of risk. If you would invest 1,885 in Aplisens SA on September 13, 2024 and sell it today you would earn a total of 5.00 from holding Aplisens SA or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aplisens SA vs. mBank SA
Performance |
| Timeline |
| Aplisens SA |
| mBank SA |
Aplisens and MBank SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aplisens and MBank SA
The main advantage of trading using opposite Aplisens and MBank SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aplisens position performs unexpectedly, MBank SA 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 MBank SA will offset losses from the drop in MBank SA's long position.| Aplisens vs. New Tech Venture | Aplisens vs. Globe Trade Centre | Aplisens vs. Monnari Trade SA | Aplisens vs. Echo Investment SA |
| MBank SA vs. UniCredit SpA | MBank SA vs. Santander Bank Polska | MBank SA vs. Bank Polska Kasa | MBank SA vs. ING Bank lski |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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