Correlation Between MLP Group and Intersport Polska
Can any of the company-specific risk be diversified away by investing in both MLP Group and Intersport Polska 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 MLP Group and Intersport Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MLP Group SA and Intersport Polska SA, you can compare the effects of market volatilities on MLP Group and Intersport Polska 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 MLP Group with a short position of Intersport Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of MLP Group and Intersport Polska.
Diversification Opportunities for MLP Group and Intersport Polska
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MLP and Intersport is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding MLP Group SA and Intersport Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intersport Polska and MLP Group 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 MLP Group SA are associated (or correlated) with Intersport Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intersport Polska has no effect on the direction of MLP Group i.e., MLP Group and Intersport Polska go up and down completely randomly.
Pair Corralation between MLP Group and Intersport Polska
Assuming the 90 days trading horizon MLP Group SA is expected to generate 0.54 times more return on investment than Intersport Polska. However, MLP Group SA is 1.86 times less risky than Intersport Polska. It trades about 0.02 of its potential returns per unit of risk. Intersport Polska SA is currently generating about -0.03 per unit of risk. If you would invest 7,340 in MLP Group SA on September 14, 2024 and sell it today you would earn a total of 560.00 from holding MLP Group SA or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MLP Group SA vs. Intersport Polska SA
Performance |
| Timeline |
| MLP Group SA |
| Intersport Polska |
MLP Group and Intersport Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MLP Group and Intersport Polska
The main advantage of trading using opposite MLP Group and Intersport Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MLP Group position performs unexpectedly, Intersport Polska 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 Intersport Polska will offset losses from the drop in Intersport Polska's long position.| MLP Group vs. Intersport Polska SA | MLP Group vs. SOFTWARE MANSION SPOLKA | MLP Group vs. MCI Management SA | MLP Group vs. Road Studio SA |
| Intersport Polska vs. Road Studio SA | Intersport Polska vs. Logintrade SA | Intersport Polska vs. PZ Cormay SA | Intersport Polska vs. Igoria Trade 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |