Correlation Between Mlk Foods and Asseco South
Can any of the company-specific risk be diversified away by investing in both Mlk Foods and Asseco South 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 Mlk Foods and Asseco South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mlk Foods Public and Asseco South Eastern, you can compare the effects of market volatilities on Mlk Foods and Asseco South 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 Mlk Foods with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mlk Foods and Asseco South.
Diversification Opportunities for Mlk Foods and Asseco South
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mlk and Asseco is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mlk Foods Public and Asseco South Eastern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asseco South Eastern and Mlk Foods 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 Mlk Foods Public are associated (or correlated) with Asseco South. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asseco South Eastern has no effect on the direction of Mlk Foods i.e., Mlk Foods and Asseco South go up and down completely randomly.
Pair Corralation between Mlk Foods and Asseco South
Assuming the 90 days trading horizon Mlk Foods Public is expected to generate 4.49 times more return on investment than Asseco South. However, Mlk Foods is 4.49 times more volatile than Asseco South Eastern. It trades about 0.12 of its potential returns per unit of risk. Asseco South Eastern is currently generating about 0.01 per unit of risk. If you would invest 59.00 in Mlk Foods Public on August 26, 2024 and sell it today you would earn a total of 57.00 from holding Mlk Foods Public or generate 96.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mlk Foods Public vs. Asseco South Eastern
Performance |
| Timeline |
| Mlk Foods Public |
| Asseco South Eastern |
Mlk Foods and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mlk Foods and Asseco South
The main advantage of trading using opposite Mlk Foods and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mlk Foods position performs unexpectedly, Asseco South 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 Asseco South will offset losses from the drop in Asseco South's long position.| Mlk Foods vs. Asseco Business Solutions | Mlk Foods vs. Detalion Games SA | Mlk Foods vs. Asseco South Eastern | Mlk Foods vs. Movie Games SA |
| Asseco South vs. Echo Investment SA | Asseco South vs. Mlk Foods Public | Asseco South vs. Quantum Software SA | Asseco South vs. Cloud Technologies 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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