Correlation Between Movie Games and Bank Handlowy
Can any of the company-specific risk be diversified away by investing in both Movie Games and Bank Handlowy 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 Movie Games and Bank Handlowy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Movie Games SA and Bank Handlowy w, you can compare the effects of market volatilities on Movie Games and Bank Handlowy 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 Movie Games with a short position of Bank Handlowy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Movie Games and Bank Handlowy.
Diversification Opportunities for Movie Games and Bank Handlowy
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Movie and Bank is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Movie Games SA and Bank Handlowy w in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Handlowy w and Movie Games 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 Movie Games SA are associated (or correlated) with Bank Handlowy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Handlowy w has no effect on the direction of Movie Games i.e., Movie Games and Bank Handlowy go up and down completely randomly.
Pair Corralation between Movie Games and Bank Handlowy
Assuming the 90 days trading horizon Movie Games SA is expected to under-perform the Bank Handlowy. In addition to that, Movie Games is 2.38 times more volatile than Bank Handlowy w. It trades about -0.09 of its total potential returns per unit of risk. Bank Handlowy w is currently generating about 0.0 per unit of volatility. If you would invest 8,896 in Bank Handlowy w on September 4, 2024 and sell it today you would lose (96.00) from holding Bank Handlowy w or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Movie Games SA vs. Bank Handlowy w
Performance |
| Timeline |
| Movie Games SA |
| Bank Handlowy w |
Movie Games and Bank Handlowy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Movie Games and Bank Handlowy
The main advantage of trading using opposite Movie Games and Bank Handlowy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Movie Games position performs unexpectedly, Bank Handlowy 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 Bank Handlowy will offset losses from the drop in Bank Handlowy's long position.| Movie Games vs. CD PROJEKT SA | Movie Games vs. PLAYWAY SA | Movie Games vs. 11 bit studios | Movie Games vs. TEN SQUARE GAMES |
| Bank Handlowy vs. Movie Games SA | Bank Handlowy vs. PZ Cormay SA | Bank Handlowy vs. Enter Air SA | Bank Handlowy vs. Quantum Software 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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