Correlation Between Gielda Papierow and MW Trade
Can any of the company-specific risk be diversified away by investing in both Gielda Papierow and MW Trade 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 Gielda Papierow and MW Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gielda Papierow Wartosciowych and MW Trade SA, you can compare the effects of market volatilities on Gielda Papierow and MW Trade 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 Gielda Papierow with a short position of MW Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gielda Papierow and MW Trade.
Diversification Opportunities for Gielda Papierow and MW Trade
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gielda and MWT is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Gielda Papierow Wartosciowych and MW Trade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MW Trade SA and Gielda Papierow 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 Gielda Papierow Wartosciowych are associated (or correlated) with MW Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MW Trade SA has no effect on the direction of Gielda Papierow i.e., Gielda Papierow and MW Trade go up and down completely randomly.
Pair Corralation between Gielda Papierow and MW Trade
Assuming the 90 days trading horizon Gielda Papierow Wartosciowych is expected to generate 0.54 times more return on investment than MW Trade. However, Gielda Papierow Wartosciowych is 1.87 times less risky than MW Trade. It trades about 0.05 of its potential returns per unit of risk. MW Trade SA is currently generating about -0.08 per unit of risk. If you would invest 3,530 in Gielda Papierow Wartosciowych on September 12, 2024 and sell it today you would earn a total of 770.00 from holding Gielda Papierow Wartosciowych or generate 21.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Gielda Papierow Wartosciowych vs. MW Trade SA
Performance |
| Timeline |
| Gielda Papierow Wart |
| MW Trade SA |
Gielda Papierow and MW Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gielda Papierow and MW Trade
The main advantage of trading using opposite Gielda Papierow and MW Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gielda Papierow position performs unexpectedly, MW Trade 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 MW Trade will offset losses from the drop in MW Trade's long position.| Gielda Papierow vs. MW Trade SA | Gielda Papierow vs. GreenX Metals | Gielda Papierow vs. Kool2play SA | Gielda Papierow vs. Quantum Software SA |
| MW Trade vs. Kruk SA | MW Trade vs. Asseco Business Solutions | MW Trade vs. Detalion Games SA | MW Trade vs. Asseco South Eastern |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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