Correlation Between MBank SA and Movie Games
Can any of the company-specific risk be diversified away by investing in both MBank SA and Movie Games 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 Movie Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mBank SA and Movie Games SA, you can compare the effects of market volatilities on MBank SA and Movie Games 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 Movie Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBank SA and Movie Games.
Diversification Opportunities for MBank SA and Movie Games
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MBank and Movie is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding mBank SA and Movie Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movie Games 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 Movie Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movie Games SA has no effect on the direction of MBank SA i.e., MBank SA and Movie Games go up and down completely randomly.
Pair Corralation between MBank SA and Movie Games
Assuming the 90 days trading horizon mBank SA is expected to generate 0.4 times more return on investment than Movie Games. However, mBank SA is 2.47 times less risky than Movie Games. It trades about 0.45 of its potential returns per unit of risk. Movie Games SA is currently generating about 0.12 per unit of risk. If you would invest 54,580 in mBank SA on November 3, 2024 and sell it today you would earn a total of 8,400 from holding mBank SA or generate 15.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
mBank SA vs. Movie Games SA
Performance |
| Timeline |
| mBank SA |
| Movie Games SA |
MBank SA and Movie Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MBank SA and Movie Games
The main advantage of trading using opposite MBank SA and Movie Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBank SA position performs unexpectedly, Movie Games 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 Movie Games will offset losses from the drop in Movie Games' long position.| MBank SA vs. UniCredit SpA | MBank SA vs. Santander Bank Polska | MBank SA vs. Bank Polska Kasa | MBank SA vs. ING Bank lski |
| Movie Games vs. CD PROJEKT SA | Movie Games vs. PLAYWAY SA | Movie Games vs. 11 bit studios | Movie Games vs. TEN SQUARE GAMES |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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