Correlation Between Medicalg and PMPG Polskie
Can any of the company-specific risk be diversified away by investing in both Medicalg and PMPG Polskie 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 Medicalg and PMPG Polskie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medicalg and PMPG Polskie Media, you can compare the effects of market volatilities on Medicalg and PMPG Polskie 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 Medicalg with a short position of PMPG Polskie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medicalg and PMPG Polskie.
Diversification Opportunities for Medicalg and PMPG Polskie
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Medicalg and PMPG is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Medicalg and PMPG Polskie Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PMPG Polskie Media and Medicalg 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 Medicalg are associated (or correlated) with PMPG Polskie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PMPG Polskie Media has no effect on the direction of Medicalg i.e., Medicalg and PMPG Polskie go up and down completely randomly.
Pair Corralation between Medicalg and PMPG Polskie
Assuming the 90 days trading horizon Medicalg is expected to generate 0.92 times more return on investment than PMPG Polskie. However, Medicalg is 1.08 times less risky than PMPG Polskie. It trades about -0.13 of its potential returns per unit of risk. PMPG Polskie Media is currently generating about -0.33 per unit of risk. If you would invest 2,220 in Medicalg on September 2, 2024 and sell it today you would lose (280.00) from holding Medicalg or give up 12.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medicalg vs. PMPG Polskie Media
Performance |
| Timeline |
| Medicalg |
| PMPG Polskie Media |
Medicalg and PMPG Polskie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medicalg and PMPG Polskie
The main advantage of trading using opposite Medicalg and PMPG Polskie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medicalg position performs unexpectedly, PMPG Polskie 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 PMPG Polskie will offset losses from the drop in PMPG Polskie's long position.| Medicalg vs. Asseco Business Solutions | Medicalg vs. Detalion Games SA | Medicalg vs. Asseco South Eastern | Medicalg vs. CFI Holding SA |
| PMPG Polskie vs. Echo Investment SA | PMPG Polskie vs. Esotiq Henderson SA | PMPG Polskie vs. Vercom SA | PMPG Polskie vs. CFI Holding 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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