Correlation Between Intersport Polska and Mlk Foods
Can any of the company-specific risk be diversified away by investing in both Intersport Polska and Mlk Foods 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 Intersport Polska and Mlk Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intersport Polska SA and Mlk Foods Public, you can compare the effects of market volatilities on Intersport Polska and Mlk Foods 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 Intersport Polska with a short position of Mlk Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intersport Polska and Mlk Foods.
Diversification Opportunities for Intersport Polska and Mlk Foods
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intersport and Mlk is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Intersport Polska SA and Mlk Foods Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mlk Foods Public and Intersport Polska 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 Intersport Polska SA are associated (or correlated) with Mlk Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mlk Foods Public has no effect on the direction of Intersport Polska i.e., Intersport Polska and Mlk Foods go up and down completely randomly.
Pair Corralation between Intersport Polska and Mlk Foods
Assuming the 90 days trading horizon Intersport Polska is expected to generate 1.62 times less return on investment than Mlk Foods. In addition to that, Intersport Polska is 1.3 times more volatile than Mlk Foods Public. It trades about 0.02 of its total potential returns per unit of risk. Mlk Foods Public is currently generating about 0.03 per unit of volatility. If you would invest 84.00 in Mlk Foods Public on September 2, 2024 and sell it today you would earn a total of 30.00 from holding Mlk Foods Public or generate 35.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intersport Polska SA vs. Mlk Foods Public
Performance |
| Timeline |
| Intersport Polska |
| Mlk Foods Public |
Intersport Polska and Mlk Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intersport Polska and Mlk Foods
The main advantage of trading using opposite Intersport Polska and Mlk Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intersport Polska position performs unexpectedly, Mlk Foods 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 Mlk Foods will offset losses from the drop in Mlk Foods' long position.| Intersport Polska vs. Asseco Business Solutions | Intersport Polska vs. Detalion Games SA | Intersport Polska vs. Asseco South Eastern | Intersport Polska vs. CFI Holding SA |
| Mlk Foods vs. MCI Management SA | Mlk Foods vs. Quantum Software SA | Mlk Foods vs. Inter Cars SA | Mlk Foods vs. Igoria Trade 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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