Correlation Between Movie Games and Intersport Polska
Can any of the company-specific risk be diversified away by investing in both Movie Games and Intersport Polska 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 Intersport Polska 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 Intersport Polska SA, you can compare the effects of market volatilities on Movie Games and Intersport Polska 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 Intersport Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Movie Games and Intersport Polska.
Diversification Opportunities for Movie Games and Intersport Polska
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Movie and Intersport is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Movie Games SA and Intersport Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intersport Polska 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 Intersport Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intersport Polska has no effect on the direction of Movie Games i.e., Movie Games and Intersport Polska go up and down completely randomly.
Pair Corralation between Movie Games and Intersport Polska
Assuming the 90 days trading horizon Movie Games is expected to generate 9.67 times less return on investment than Intersport Polska. But when comparing it to its historical volatility, Movie Games SA is 1.25 times less risky than Intersport Polska. It trades about 0.0 of its potential returns per unit of risk. Intersport Polska SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 88.00 in Intersport Polska SA on August 24, 2024 and sell it today you would lose (26.00) from holding Intersport Polska SA or give up 29.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Movie Games SA vs. Intersport Polska SA
Performance |
| Timeline |
| Movie Games SA |
| Intersport Polska |
Movie Games and Intersport Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Movie Games and Intersport Polska
The main advantage of trading using opposite Movie Games and Intersport Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Movie Games position performs unexpectedly, Intersport Polska 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 Intersport Polska will offset losses from the drop in Intersport Polska'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 |
| Intersport Polska vs. Asseco Business Solutions | Intersport Polska vs. Detalion Games SA | Intersport Polska vs. Asseco South Eastern | Intersport Polska vs. Movie Games 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |