Correlation Between MCI Management and Kogeneracja
Can any of the company-specific risk be diversified away by investing in both MCI Management and Kogeneracja 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 Kogeneracja 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 Kogeneracja SA, you can compare the effects of market volatilities on MCI Management and Kogeneracja 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 Kogeneracja. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCI Management and Kogeneracja.
Diversification Opportunities for MCI Management and Kogeneracja
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MCI and Kogeneracja is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding MCI Management SA and Kogeneracja SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kogeneracja 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 Kogeneracja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kogeneracja SA has no effect on the direction of MCI Management i.e., MCI Management and Kogeneracja go up and down completely randomly.
Pair Corralation between MCI Management and Kogeneracja
Assuming the 90 days trading horizon MCI Management is expected to generate 1.02 times less return on investment than Kogeneracja. But when comparing it to its historical volatility, MCI Management SA is 1.36 times less risky than Kogeneracja. It trades about 0.06 of its potential returns per unit of risk. Kogeneracja SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,980 in Kogeneracja SA on September 14, 2024 and sell it today you would earn a total of 1,090 from holding Kogeneracja SA or generate 27.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCI Management SA vs. Kogeneracja SA
Performance |
| Timeline |
| MCI Management SA |
| Kogeneracja SA |
MCI Management and Kogeneracja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCI Management and Kogeneracja
The main advantage of trading using opposite MCI Management and Kogeneracja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCI Management position performs unexpectedly, Kogeneracja 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 Kogeneracja will offset losses from the drop in Kogeneracja's long position.| MCI Management vs. Immobile | MCI Management vs. Asseco Business Solutions | MCI Management vs. Asseco South Eastern | MCI Management vs. HM Inwest SA |
| Kogeneracja vs. BNP Paribas Bank | Kogeneracja vs. MCI Management SA | Kogeneracja vs. Medicofarma Biotech SA | Kogeneracja vs. PLAYWAY 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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