Correlation Between Kogeneracja and M Food
Can any of the company-specific risk be diversified away by investing in both Kogeneracja 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 Kogeneracja and M Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kogeneracja SA and M Food SA, you can compare the effects of market volatilities on Kogeneracja 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 Kogeneracja with a short position of M Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kogeneracja and M Food.
Diversification Opportunities for Kogeneracja and M Food
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kogeneracja and MFD is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kogeneracja SA 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 Kogeneracja 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 Kogeneracja SA 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 Kogeneracja i.e., Kogeneracja and M Food go up and down completely randomly.
Pair Corralation between Kogeneracja and M Food
Assuming the 90 days trading horizon Kogeneracja SA is expected to generate 0.44 times more return on investment than M Food. However, Kogeneracja SA is 2.28 times less risky than M Food. It trades about 0.02 of its potential returns per unit of risk. M Food SA is currently generating about -0.04 per unit of risk. If you would invest 4,860 in Kogeneracja SA on September 4, 2024 and sell it today you would earn a total of 390.00 from holding Kogeneracja SA or generate 8.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 62.6% |
| Values | Daily Returns |
Kogeneracja SA vs. M Food SA
Performance |
| Timeline |
| Kogeneracja SA |
| M Food SA |
Kogeneracja and M Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kogeneracja and M Food
The main advantage of trading using opposite Kogeneracja and M Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kogeneracja 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.| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja vs. Polski Koncern Naftowy |
| M Food vs. Asseco Business Solutions | M Food vs. Kogeneracja SA | M Food vs. Asseco South Eastern | M Food vs. Movie Games 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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