Correlation Between Gremi Media and PMPG Polskie
Can any of the company-specific risk be diversified away by investing in both Gremi Media and PMPG Polskie 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 Gremi Media and PMPG Polskie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gremi Media SA and PMPG Polskie Media, you can compare the effects of market volatilities on Gremi Media and PMPG Polskie 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 Gremi Media with a short position of PMPG Polskie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gremi Media and PMPG Polskie.
Diversification Opportunities for Gremi Media and PMPG Polskie
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gremi and PMPG is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Gremi Media SA and PMPG Polskie Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PMPG Polskie Media and Gremi Media 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 Gremi Media SA are associated (or correlated) with PMPG Polskie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PMPG Polskie Media has no effect on the direction of Gremi Media i.e., Gremi Media and PMPG Polskie go up and down completely randomly.
Pair Corralation between Gremi Media and PMPG Polskie
Assuming the 90 days trading horizon Gremi Media SA is expected to generate 0.36 times more return on investment than PMPG Polskie. However, Gremi Media SA is 2.8 times less risky than PMPG Polskie. It trades about 0.01 of its potential returns per unit of risk. PMPG Polskie Media is currently generating about -0.28 per unit of risk. If you would invest 5,300 in Gremi Media SA on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Gremi Media SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 30.0% |
| Values | Daily Returns |
Gremi Media SA vs. PMPG Polskie Media
Performance |
| Timeline |
| Gremi Media SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PMPG Polskie Media |
Gremi Media and PMPG Polskie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gremi Media and PMPG Polskie
The main advantage of trading using opposite Gremi Media and PMPG Polskie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gremi Media position performs unexpectedly, PMPG Polskie 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 PMPG Polskie will offset losses from the drop in PMPG Polskie's long position.| Gremi Media vs. BNP Paribas Bank | Gremi Media vs. Road Studio SA | Gremi Media vs. mBank SA | Gremi Media vs. SOFTWARE MANSION SPOLKA |
| PMPG Polskie vs. Skyline Investment SA | PMPG Polskie vs. Saule Technologies SA | PMPG Polskie vs. Carlson Investments SA | PMPG Polskie vs. Inter Cars 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |