Correlation Between Jastrzebska Spotka and M Food
Can any of the company-specific risk be diversified away by investing in both Jastrzebska Spotka and M Food 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 Jastrzebska Spotka and M Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jastrzebska Spotka Weglowa and M Food SA, you can compare the effects of market volatilities on Jastrzebska Spotka and M Food 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 Jastrzebska Spotka with a short position of M Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jastrzebska Spotka and M Food.
Diversification Opportunities for Jastrzebska Spotka and M Food
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jastrzebska and MFD is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jastrzebska Spotka Weglowa and M Food SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M Food SA and Jastrzebska Spotka 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 Jastrzebska Spotka Weglowa are associated (or correlated) with M Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M Food SA has no effect on the direction of Jastrzebska Spotka i.e., Jastrzebska Spotka and M Food go up and down completely randomly.
Pair Corralation between Jastrzebska Spotka and M Food
Assuming the 90 days trading horizon Jastrzebska Spotka Weglowa is expected to generate 0.44 times more return on investment than M Food. However, Jastrzebska Spotka Weglowa is 2.3 times less risky than M Food. It trades about -0.23 of its potential returns per unit of risk. M Food SA is currently generating about -0.41 per unit of risk. If you would invest 2,650 in Jastrzebska Spotka Weglowa on September 14, 2024 and sell it today you would lose (243.00) from holding Jastrzebska Spotka Weglowa or give up 9.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
Jastrzebska Spotka Weglowa vs. M Food SA
Performance |
| Timeline |
| Jastrzebska Spotka |
| M Food SA |
Jastrzebska Spotka and M Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jastrzebska Spotka and M Food
The main advantage of trading using opposite Jastrzebska Spotka and M Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jastrzebska Spotka position performs unexpectedly, M Food 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 M Food will offset losses from the drop in M Food's long position.| Jastrzebska Spotka vs. GreenX Metals | Jastrzebska Spotka vs. Asseco Business Solutions | Jastrzebska Spotka vs. Asseco South Eastern | Jastrzebska Spotka vs. HM Inwest SA |
| M Food vs. PMPG Polskie Media | M Food vs. GreenX Metals | M Food vs. MCI Management SA | M Food vs. X Trade Brokers |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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