Correlation Between Logintrade and PMPG Polskie
Can any of the company-specific risk be diversified away by investing in both Logintrade and PMPG Polskie 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 PMPG Polskie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logintrade SA and PMPG Polskie Media, you can compare the effects of market volatilities on Logintrade and PMPG Polskie 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 PMPG Polskie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logintrade and PMPG Polskie.
Diversification Opportunities for Logintrade and PMPG Polskie
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Logintrade and PMPG is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Logintrade SA and PMPG Polskie Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PMPG Polskie Media 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 PMPG Polskie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PMPG Polskie Media has no effect on the direction of Logintrade i.e., Logintrade and PMPG Polskie go up and down completely randomly.
Pair Corralation between Logintrade and PMPG Polskie
Assuming the 90 days trading horizon Logintrade SA is expected to generate 1.65 times more return on investment than PMPG Polskie. However, Logintrade is 1.65 times more volatile than PMPG Polskie Media. It trades about 0.09 of its potential returns per unit of risk. PMPG Polskie Media is currently generating about -0.02 per unit of risk. If you would invest 110.00 in Logintrade SA on September 3, 2024 and sell it today you would earn a total of 238.00 from holding Logintrade SA or generate 216.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 74.95% |
| Values | Daily Returns |
Logintrade SA vs. PMPG Polskie Media
Performance |
| Timeline |
| Logintrade SA |
| PMPG Polskie Media |
Logintrade and PMPG Polskie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logintrade and PMPG Polskie
The main advantage of trading using opposite Logintrade and PMPG Polskie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logintrade position performs unexpectedly, PMPG Polskie 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 PMPG Polskie will offset losses from the drop in PMPG Polskie's long position.| Logintrade vs. Drago entertainment SA | Logintrade vs. GreenX Metals | Logintrade vs. Quantum Software SA | Logintrade vs. Cloud Technologies SA |
| PMPG Polskie vs. Asseco Business Solutions | PMPG Polskie vs. Detalion Games SA | PMPG Polskie vs. Kogeneracja SA | PMPG Polskie vs. Asseco South Eastern |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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