Correlation Between HM Inwest and Movie Games
Can any of the company-specific risk be diversified away by investing in both HM Inwest and Movie Games 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 HM Inwest and Movie Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HM Inwest SA and Movie Games SA, you can compare the effects of market volatilities on HM Inwest and Movie Games 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 HM Inwest with a short position of Movie Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of HM Inwest and Movie Games.
Diversification Opportunities for HM Inwest and Movie Games
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HMI and Movie is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding HM Inwest SA and Movie Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movie Games SA and HM Inwest 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 HM Inwest SA are associated (or correlated) with Movie Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movie Games SA has no effect on the direction of HM Inwest i.e., HM Inwest and Movie Games go up and down completely randomly.
Pair Corralation between HM Inwest and Movie Games
Assuming the 90 days trading horizon HM Inwest SA is expected to generate 0.19 times more return on investment than Movie Games. However, HM Inwest SA is 5.28 times less risky than Movie Games. It trades about 0.03 of its potential returns per unit of risk. Movie Games SA is currently generating about -0.39 per unit of risk. If you would invest 4,790 in HM Inwest SA on September 1, 2024 and sell it today you would earn a total of 10.00 from holding HM Inwest SA or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
HM Inwest SA vs. Movie Games SA
Performance |
| Timeline |
| HM Inwest SA |
| Movie Games SA |
HM Inwest and Movie Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HM Inwest and Movie Games
The main advantage of trading using opposite HM Inwest and Movie Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HM Inwest position performs unexpectedly, Movie Games 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 Movie Games will offset losses from the drop in Movie Games' long position.| HM Inwest vs. Mercator Medical SA | HM Inwest vs. Gaming Factory SA | HM Inwest vs. Intersport Polska SA | HM Inwest vs. CI Games SA |
| Movie Games vs. Medicalg | Movie Games vs. Inter Cars SA | Movie Games vs. PMPG Polskie Media | Movie Games vs. GreenX Metals |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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