Correlation Between MBank SA and All In
Can any of the company-specific risk be diversified away by investing in both MBank SA and All In 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 All In into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mBank SA and All In Games, you can compare the effects of market volatilities on MBank SA and All In 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 All In. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBank SA and All In.
Diversification Opportunities for MBank SA and All In
Very good diversification
The 3 months correlation between MBank and All is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding mBank SA and All In Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All In Games 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 All In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All In Games has no effect on the direction of MBank SA i.e., MBank SA and All In go up and down completely randomly.
Pair Corralation between MBank SA and All In
Assuming the 90 days trading horizon mBank SA is expected to generate 0.57 times more return on investment than All In. However, mBank SA is 1.77 times less risky than All In. It trades about -0.04 of its potential returns per unit of risk. All In Games is currently generating about -0.14 per unit of risk. If you would invest 56,120 in mBank SA on October 9, 2024 and sell it today you would lose (920.00) from holding mBank SA or give up 1.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
mBank SA vs. All In Games
Performance |
| Timeline |
| mBank SA |
| All In Games |
MBank SA and All In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MBank SA and All In
The main advantage of trading using opposite MBank SA and All In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBank SA position performs unexpectedly, All In 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 All In will offset losses from the drop in All In's long position.| MBank SA vs. Ultimate Games SA | MBank SA vs. Movie Games SA | MBank SA vs. LSI Software SA | MBank SA vs. MW Trade 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |