Correlation Between Movie Games and Grupa HRC
Can any of the company-specific risk be diversified away by investing in both Movie Games and Grupa HRC 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 Grupa HRC 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 Grupa HRC SA, you can compare the effects of market volatilities on Movie Games and Grupa HRC 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 Grupa HRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Movie Games and Grupa HRC.
Diversification Opportunities for Movie Games and Grupa HRC
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Movie and Grupa is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Movie Games SA and Grupa HRC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupa HRC SA 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 Grupa HRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupa HRC SA has no effect on the direction of Movie Games i.e., Movie Games and Grupa HRC go up and down completely randomly.
Pair Corralation between Movie Games and Grupa HRC
Assuming the 90 days trading horizon Movie Games SA is expected to generate 0.35 times more return on investment than Grupa HRC. However, Movie Games SA is 2.88 times less risky than Grupa HRC. It trades about -0.21 of its potential returns per unit of risk. Grupa HRC SA is currently generating about -0.09 per unit of risk. If you would invest 1,914 in Movie Games SA on August 30, 2024 and sell it today you would lose (260.00) from holding Movie Games SA or give up 13.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 45.24% |
| Values | Daily Returns |
Movie Games SA vs. Grupa HRC SA
Performance |
| Timeline |
| Movie Games SA |
| Grupa HRC SA |
Movie Games and Grupa HRC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Movie Games and Grupa HRC
The main advantage of trading using opposite Movie Games and Grupa HRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Movie Games position performs unexpectedly, Grupa HRC 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 Grupa HRC will offset losses from the drop in Grupa HRC's long position.| Movie Games vs. MCI Management SA | Movie Games vs. Bank Millennium SA | Movie Games vs. mBank SA | Movie Games vs. Centrum Finansowe Banku |
| Grupa HRC vs. Alior Bank SA | Grupa HRC vs. Movie Games SA | Grupa HRC vs. mBank SA | Grupa HRC vs. ING Bank lski |
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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