Correlation Between Mlk Foods and Warsaw WIG80
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By analyzing existing cross correlation between Mlk Foods Public and Warsaw WIG80 Index, you can compare the effects of market volatilities on Mlk Foods and Warsaw WIG80 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 Warsaw WIG80. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mlk Foods and Warsaw WIG80.
Diversification Opportunities for Mlk Foods and Warsaw WIG80
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mlk and Warsaw is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Mlk Foods Public and Warsaw WIG80 Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warsaw WIG80 Index 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 Warsaw WIG80. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warsaw WIG80 Index has no effect on the direction of Mlk Foods i.e., Mlk Foods and Warsaw WIG80 go up and down completely randomly.
Pair Corralation between Mlk Foods and Warsaw WIG80
Assuming the 90 days trading horizon Mlk Foods Public is expected to generate 8.7 times more return on investment than Warsaw WIG80. However, Mlk Foods is 8.7 times more volatile than Warsaw WIG80 Index. It trades about 0.06 of its potential returns per unit of risk. Warsaw WIG80 Index is currently generating about -0.15 per unit of risk. If you would invest 110.00 in Mlk Foods Public on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Mlk Foods Public or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mlk Foods Public vs. Warsaw WIG80 Index
Performance |
| Timeline |
Mlk Foods and Warsaw WIG80 Volatility Contrast
Predicted Return Density |
| Returns |
Mlk Foods Public
Pair trading matchups for Mlk Foods
Warsaw WIG80 Index
Pair trading matchups for Warsaw WIG80
Pair Trading with Mlk Foods and Warsaw WIG80
The main advantage of trading using opposite Mlk Foods and Warsaw WIG80 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mlk Foods position performs unexpectedly, Warsaw WIG80 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 Warsaw WIG80 will offset losses from the drop in Warsaw WIG80's long position.| Mlk Foods vs. Asseco Business Solutions | Mlk Foods vs. Detalion Games SA | Mlk Foods vs. CFI Holding SA | Mlk Foods vs. HM Inwest SA |
| Warsaw WIG80 vs. Pixel Crow Games | Warsaw WIG80 vs. Inter Cars SA | Warsaw WIG80 vs. Mlk Foods Public | Warsaw WIG80 vs. Centrum Finansowe Banku |
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.
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