Correlation Between MBank SA and Examobile
Can any of the company-specific risk be diversified away by investing in both MBank SA and Examobile 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 Examobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mBank SA and Examobile SA, you can compare the effects of market volatilities on MBank SA and Examobile 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 Examobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBank SA and Examobile.
Diversification Opportunities for MBank SA and Examobile
Very good diversification
The 3 months correlation between MBank and Examobile is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding mBank SA and Examobile SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Examobile 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 Examobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Examobile SA has no effect on the direction of MBank SA i.e., MBank SA and Examobile go up and down completely randomly.
Pair Corralation between MBank SA and Examobile
Assuming the 90 days trading horizon mBank SA is expected to generate 1.45 times more return on investment than Examobile. However, MBank SA is 1.45 times more volatile than Examobile SA. It trades about 0.36 of its potential returns per unit of risk. Examobile SA is currently generating about 0.41 per unit of risk. If you would invest 55,720 in mBank SA on November 8, 2024 and sell it today you would earn a total of 9,720 from holding mBank SA or generate 17.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.83% |
| Values | Daily Returns |
mBank SA vs. Examobile SA
Performance |
| Timeline |
| mBank SA |
| Examobile SA |
MBank SA and Examobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MBank SA and Examobile
The main advantage of trading using opposite MBank SA and Examobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBank SA position performs unexpectedly, Examobile 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 Examobile will offset losses from the drop in Examobile's long position.| MBank SA vs. Santander Bank Polska | MBank SA vs. Bank Polska Kasa | MBank SA vs. ING Bank lski | MBank SA vs. Bank Handlowy w |
| Examobile vs. Movie Games SA | Examobile vs. UF Games SA | Examobile vs. Skyline Investment SA | Examobile vs. X Trade Brokers |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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