Correlation Between Ice Code and MW Trade
Can any of the company-specific risk be diversified away by investing in both Ice Code 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 Ice Code and MW Trade 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 MW Trade SA, you can compare the effects of market volatilities on Ice Code 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 Ice Code with a short position of MW Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ice Code and MW Trade.
Diversification Opportunities for Ice Code and MW Trade
Very weak diversification
The 3 months correlation between Ice and MWT is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ice Code Games 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 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 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 Ice Code i.e., Ice Code and MW Trade go up and down completely randomly.
Pair Corralation between Ice Code and MW Trade
Assuming the 90 days trading horizon Ice Code Games is expected to under-perform the MW Trade. In addition to that, Ice Code is 3.66 times more volatile than MW Trade SA. It trades about -0.29 of its total potential returns per unit of risk. MW Trade SA is currently generating about -0.45 per unit of volatility. If you would invest 394.00 in MW Trade SA on August 28, 2024 and sell it today you would lose (54.00) from holding MW Trade SA or give up 13.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 70.0% |
| Values | Daily Returns |
Ice Code Games vs. MW Trade SA
Performance |
| Timeline |
| Ice Code Games |
| MW Trade SA |
Ice Code and MW Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ice Code and MW Trade
The main advantage of trading using opposite Ice Code and MW Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ice Code 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.| Ice Code vs. Asseco Business Solutions | Ice Code vs. Detalion Games SA | Ice Code vs. Asseco South Eastern | Ice Code vs. Movie Games SA |
| MW Trade vs. Asseco Business Solutions | MW Trade vs. Detalion Games SA | MW Trade vs. Asseco South Eastern | MW Trade vs. CFI Holding 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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