Correlation Between Ice Code and MBank SA
Can any of the company-specific risk be diversified away by investing in both Ice Code 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 Ice Code and MBank SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ice Code Games and mBank SA, you can compare the effects of market volatilities on Ice Code 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 Ice Code with a short position of MBank SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ice Code and MBank SA.
Diversification Opportunities for Ice Code and MBank SA
Poor diversification
The 3 months correlation between Ice and MBank is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ice Code Games and mBank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mBank SA and Ice Code 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 Ice Code Games 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 Ice Code i.e., Ice Code and MBank SA go up and down completely randomly.
Pair Corralation between Ice Code and MBank SA
Assuming the 90 days trading horizon Ice Code Games is expected to under-perform the MBank SA. In addition to that, Ice Code is 2.59 times more volatile than mBank SA. It trades about -0.02 of its total potential returns per unit of risk. mBank SA is currently generating about 0.05 per unit of volatility. If you would invest 39,770 in mBank SA on September 1, 2024 and sell it today you would earn a total of 13,230 from holding mBank SA or generate 33.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 75.34% |
| Values | Daily Returns |
Ice Code Games vs. mBank SA
Performance |
| Timeline |
| Ice Code Games |
| mBank SA |
Ice Code and MBank SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ice Code and MBank SA
The main advantage of trading using opposite Ice Code and MBank SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ice Code 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.| Ice Code vs. Movie Games SA | Ice Code vs. Gamedust SA | Ice Code vs. 3R Games SA | Ice Code vs. Baked Games SA |
| MBank SA vs. Ultimate Games SA | MBank SA vs. New Tech Venture | MBank SA vs. 3R Games SA | MBank SA vs. Biztech Konsulting 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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