Correlation Between Logintrade and Movie Games
Can any of the company-specific risk be diversified away by investing in both Logintrade and Movie Games 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 Logintrade and Movie Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logintrade SA and Movie Games SA, you can compare the effects of market volatilities on Logintrade and Movie Games 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 Logintrade with a short position of Movie Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logintrade and Movie Games.
Diversification Opportunities for Logintrade and Movie Games
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Logintrade and Movie is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Logintrade SA and Movie Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movie Games SA and Logintrade 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 Logintrade SA are associated (or correlated) with Movie Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movie Games SA has no effect on the direction of Logintrade i.e., Logintrade and Movie Games go up and down completely randomly.
Pair Corralation between Logintrade and Movie Games
Assuming the 90 days trading horizon Logintrade is expected to generate 2.81 times less return on investment than Movie Games. But when comparing it to its historical volatility, Logintrade SA is 1.01 times less risky than Movie Games. It trades about 0.07 of its potential returns per unit of risk. Movie Games SA is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,364 in Movie Games SA on October 20, 2024 and sell it today you would earn a total of 324.00 from holding Movie Games SA or generate 23.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 52.94% |
| Values | Daily Returns |
Logintrade SA vs. Movie Games SA
Performance |
| Timeline |
| Logintrade SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Movie Games SA |
Logintrade and Movie Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logintrade and Movie Games
The main advantage of trading using opposite Logintrade and Movie Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logintrade position performs unexpectedly, Movie Games 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 Movie Games will offset losses from the drop in Movie Games' long position.| Logintrade vs. Medicofarma Biotech SA | Logintrade vs. BNP Paribas Bank | Logintrade vs. Quantum Software SA | Logintrade vs. Mlk Foods Public |
| Movie Games vs. Igoria Trade SA | Movie Games vs. PZ Cormay SA | Movie Games vs. GreenX Metals | Movie Games vs. LSI Software 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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