Correlation Between MBank SA and Ice Code
Can any of the company-specific risk be diversified away by investing in both MBank SA and Ice Code 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 Ice Code into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mBank SA and Ice Code Games, you can compare the effects of market volatilities on MBank SA and Ice Code 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 Ice Code. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBank SA and Ice Code.
Diversification Opportunities for MBank SA and Ice Code
Poor diversification
The 3 months correlation between MBank and Ice is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding mBank SA and Ice Code Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ice Code 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 Ice Code. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ice Code Games has no effect on the direction of MBank SA i.e., MBank SA and Ice Code go up and down completely randomly.
Pair Corralation between MBank SA and Ice Code
Assuming the 90 days trading horizon mBank SA is expected to generate 0.39 times more return on investment than Ice Code. However, mBank SA is 2.59 times less risky than Ice Code. It trades about 0.05 of its potential returns per unit of risk. Ice Code Games is currently generating about -0.02 per unit of risk. If you would invest 39,770 in mBank SA on September 1, 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 Together |
| Strength | Significant |
| Accuracy | 75.34% |
| Values | Daily Returns |
mBank SA vs. Ice Code Games
Performance |
| Timeline |
| mBank SA |
| Ice Code Games |
MBank SA and Ice Code Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MBank SA and Ice Code
The main advantage of trading using opposite MBank SA and Ice Code positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBank SA position performs unexpectedly, Ice Code 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 Ice Code will offset losses from the drop in Ice Code's long position.| MBank SA vs. Ultimate Games SA | MBank SA vs. New Tech Venture | MBank SA vs. 3R Games SA | MBank SA vs. Biztech Konsulting SA |
| Ice Code vs. Movie Games SA | Ice Code vs. Gamedust SA | Ice Code vs. 3R Games SA | Ice Code vs. Baked Games 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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