Correlation Between MBank SA and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both MBank SA and TEN SQUARE 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 TEN SQUARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mBank SA and TEN SQUARE GAMES, you can compare the effects of market volatilities on MBank SA and TEN SQUARE 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 TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBank SA and TEN SQUARE.
Diversification Opportunities for MBank SA and TEN SQUARE
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MBank and TEN is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding mBank SA and TEN SQUARE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEN SQUARE 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 TEN SQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEN SQUARE GAMES has no effect on the direction of MBank SA i.e., MBank SA and TEN SQUARE go up and down completely randomly.
Pair Corralation between MBank SA and TEN SQUARE
Assuming the 90 days trading horizon mBank SA is expected to generate 0.75 times more return on investment than TEN SQUARE. However, mBank SA is 1.34 times less risky than TEN SQUARE. It trades about 0.46 of its potential returns per unit of risk. TEN SQUARE GAMES is currently generating about 0.06 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
mBank SA vs. TEN SQUARE GAMES
Performance |
| Timeline |
| mBank SA |
| TEN SQUARE GAMES |
MBank SA and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MBank SA and TEN SQUARE
The main advantage of trading using opposite MBank SA and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBank SA position performs unexpectedly, TEN SQUARE 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 TEN SQUARE will offset losses from the drop in TEN SQUARE's 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 |
| TEN SQUARE vs. Skyline Investment SA | TEN SQUARE vs. Bank Millennium SA | TEN SQUARE vs. Gamedust SA | TEN SQUARE vs. M Food 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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