Correlation Between MCI Management and Gaming Factory
Can any of the company-specific risk be diversified away by investing in both MCI Management and Gaming Factory 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 MCI Management and Gaming Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCI Management SA and Gaming Factory SA, you can compare the effects of market volatilities on MCI Management and Gaming Factory 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 MCI Management with a short position of Gaming Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCI Management and Gaming Factory.
Diversification Opportunities for MCI Management and Gaming Factory
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between MCI and Gaming is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding MCI Management SA and Gaming Factory SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Factory SA and MCI Management 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 MCI Management SA are associated (or correlated) with Gaming Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Factory SA has no effect on the direction of MCI Management i.e., MCI Management and Gaming Factory go up and down completely randomly.
Pair Corralation between MCI Management and Gaming Factory
Assuming the 90 days trading horizon MCI Management SA is expected to generate 0.41 times more return on investment than Gaming Factory. However, MCI Management SA is 2.41 times less risky than Gaming Factory. It trades about 0.01 of its potential returns per unit of risk. Gaming Factory SA is currently generating about -0.1 per unit of risk. If you would invest 2,550 in MCI Management SA on September 12, 2024 and sell it today you would earn a total of 20.00 from holding MCI Management SA or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCI Management SA vs. Gaming Factory SA
Performance |
| Timeline |
| MCI Management SA |
| Gaming Factory SA |
MCI Management and Gaming Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCI Management and Gaming Factory
The main advantage of trading using opposite MCI Management and Gaming Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCI Management position performs unexpectedly, Gaming Factory 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 Gaming Factory will offset losses from the drop in Gaming Factory's long position.| MCI Management vs. Immobile | MCI Management vs. Asseco Business Solutions | MCI Management vs. Detalion Games SA | MCI Management vs. Asseco South Eastern |
| Gaming Factory vs. Marie Brizard Wine | Gaming Factory vs. Detalion Games SA | Gaming Factory vs. True Games Syndicate | Gaming Factory vs. Mercator Medical 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |