Correlation Between Movie Games and Centrum Finansowe
Can any of the company-specific risk be diversified away by investing in both Movie Games and Centrum Finansowe 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 Centrum Finansowe 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 Centrum Finansowe Banku, you can compare the effects of market volatilities on Movie Games and Centrum Finansowe 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 Centrum Finansowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Movie Games and Centrum Finansowe.
Diversification Opportunities for Movie Games and Centrum Finansowe
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Movie and Centrum is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Movie Games SA and Centrum Finansowe Banku in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centrum Finansowe Banku 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 Centrum Finansowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centrum Finansowe Banku has no effect on the direction of Movie Games i.e., Movie Games and Centrum Finansowe go up and down completely randomly.
Pair Corralation between Movie Games and Centrum Finansowe
Assuming the 90 days trading horizon Movie Games SA is expected to under-perform the Centrum Finansowe. But the stock apears to be less risky and, when comparing its historical volatility, Movie Games SA is 2.23 times less risky than Centrum Finansowe. The stock trades about -0.21 of its potential returns per unit of risk. The Centrum Finansowe Banku is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 545.00 in Centrum Finansowe Banku on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Centrum Finansowe Banku or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Movie Games SA vs. Centrum Finansowe Banku
Performance |
| Timeline |
| Movie Games SA |
| Centrum Finansowe Banku |
Movie Games and Centrum Finansowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Movie Games and Centrum Finansowe
The main advantage of trading using opposite Movie Games and Centrum Finansowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Movie Games position performs unexpectedly, Centrum Finansowe 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 Centrum Finansowe will offset losses from the drop in Centrum Finansowe's long position.The idea behind Movie Games SA and Centrum Finansowe Banku pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Centrum Finansowe vs. Carlson Investments SA | Centrum Finansowe vs. Asseco Business Solutions | Centrum Finansowe vs. Detalion Games SA | Centrum Finansowe vs. Asseco South Eastern |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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