Correlation Between MBank SA and Atal SA
Can any of the company-specific risk be diversified away by investing in both MBank SA and Atal SA 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 MBank SA and Atal SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mBank SA and Atal SA, you can compare the effects of market volatilities on MBank SA and Atal SA 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 MBank SA with a short position of Atal SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBank SA and Atal SA.
Diversification Opportunities for MBank SA and Atal SA
Excellent diversification
The 3 months correlation between MBank and Atal is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding mBank SA and Atal SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atal SA and MBank SA 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 mBank SA are associated (or correlated) with Atal SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atal SA has no effect on the direction of MBank SA i.e., MBank SA and Atal SA go up and down completely randomly.
Pair Corralation between MBank SA and Atal SA
Assuming the 90 days trading horizon mBank SA is expected to generate 1.29 times more return on investment than Atal SA. However, MBank SA is 1.29 times more volatile than Atal SA. It trades about 0.03 of its potential returns per unit of risk. Atal SA is currently generating about -0.14 per unit of risk. If you would invest 56,120 in mBank SA on September 14, 2024 and sell it today you would earn a total of 520.00 from holding mBank SA or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
mBank SA vs. Atal SA
Performance |
| Timeline |
| mBank SA |
| Atal SA |
MBank SA and Atal SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MBank SA and Atal SA
The main advantage of trading using opposite MBank SA and Atal SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBank SA position performs unexpectedly, Atal SA 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 Atal SA will offset losses from the drop in Atal SA's long position.| MBank SA vs. UniCredit SpA | MBank SA vs. Santander Bank Polska | MBank SA vs. Bank Polska Kasa | MBank SA vs. ING Bank lski |
| Atal SA vs. Medicofarma Biotech SA | Atal SA vs. M Food SA | Atal SA vs. Live Motion Games | Atal SA vs. Drago entertainment 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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