Correlation Between MBank SA and Agroliga Group
Can any of the company-specific risk be diversified away by investing in both MBank SA and Agroliga Group 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 Agroliga Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mBank SA and Agroliga Group PLC, you can compare the effects of market volatilities on MBank SA and Agroliga Group 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 Agroliga Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBank SA and Agroliga Group.
Diversification Opportunities for MBank SA and Agroliga Group
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between MBank and Agroliga is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding mBank SA and Agroliga Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agroliga Group PLC 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 Agroliga Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agroliga Group PLC has no effect on the direction of MBank SA i.e., MBank SA and Agroliga Group go up and down completely randomly.
Pair Corralation between MBank SA and Agroliga Group
Assuming the 90 days trading horizon mBank SA is expected to generate 0.73 times more return on investment than Agroliga Group. However, mBank SA is 1.38 times less risky than Agroliga Group. It trades about 0.05 of its potential returns per unit of risk. Agroliga Group PLC is currently generating about 0.01 per unit of risk. If you would invest 39,770 in mBank SA on August 31, 2024 and sell it today you would earn a total of 13,230 from holding mBank SA or generate 33.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.67% |
| Values | Daily Returns |
mBank SA vs. Agroliga Group PLC
Performance |
| Timeline |
| mBank SA |
| Agroliga Group PLC |
MBank SA and Agroliga Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MBank SA and Agroliga Group
The main advantage of trading using opposite MBank SA and Agroliga Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBank SA position performs unexpectedly, Agroliga Group 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 Agroliga Group will offset losses from the drop in Agroliga Group's long position.The idea behind mBank SA and Agroliga Group PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Agroliga Group vs. Clean Carbon Energy | Agroliga Group vs. ADX | Agroliga Group vs. Vee SA | Agroliga Group vs. Novina 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |