Correlation Between MBank SA and Investment Friends
Can any of the company-specific risk be diversified away by investing in both MBank SA and Investment Friends 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 Investment Friends into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mBank SA and Investment Friends Capital, you can compare the effects of market volatilities on MBank SA and Investment Friends 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 Investment Friends. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBank SA and Investment Friends.
Diversification Opportunities for MBank SA and Investment Friends
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MBank and Investment is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding mBank SA and Investment Friends Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Friends 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 Investment Friends. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Friends has no effect on the direction of MBank SA i.e., MBank SA and Investment Friends go up and down completely randomly.
Pair Corralation between MBank SA and Investment Friends
If you would invest 55,360 in mBank SA on October 24, 2024 and sell it today you would earn a total of 2,640 from holding mBank SA or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
mBank SA vs. Investment Friends Capital
Performance |
| Timeline |
| mBank SA |
| Investment Friends |
MBank SA and Investment Friends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MBank SA and Investment Friends
The main advantage of trading using opposite MBank SA and Investment Friends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBank SA position performs unexpectedly, Investment Friends 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 Investment Friends will offset losses from the drop in Investment Friends' long position.| MBank SA vs. Creotech Instruments SA | MBank SA vs. New Tech Venture | MBank SA vs. Skyline Investment SA | MBank SA vs. UniCredit SpA |
| Investment Friends vs. Noble Financials SA | Investment Friends vs. X Trade Brokers | Investment Friends vs. mBank SA | Investment Friends vs. GreenX Metals |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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