Correlation Between MW Trade and All In
Can any of the company-specific risk be diversified away by investing in both MW Trade and All In 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 MW Trade and All In into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MW Trade SA and All In Games, you can compare the effects of market volatilities on MW Trade and All In 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 MW Trade with a short position of All In. Check out your portfolio center. Please also check ongoing floating volatility patterns of MW Trade and All In.
Diversification Opportunities for MW Trade and All In
Very weak diversification
The 3 months correlation between MWT and All is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding MW Trade SA and All In Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All In Games and MW Trade 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 MW Trade SA are associated (or correlated) with All In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All In Games has no effect on the direction of MW Trade i.e., MW Trade and All In go up and down completely randomly.
Pair Corralation between MW Trade and All In
Assuming the 90 days trading horizon MW Trade SA is expected to generate 1.4 times more return on investment than All In. However, MW Trade is 1.4 times more volatile than All In Games. It trades about 0.22 of its potential returns per unit of risk. All In Games is currently generating about 0.07 per unit of risk. If you would invest 310.00 in MW Trade SA on October 25, 2024 and sell it today you would earn a total of 48.00 from holding MW Trade SA or generate 15.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MW Trade SA vs. All In Games
Performance |
| Timeline |
| MW Trade SA |
| All In Games |
MW Trade and All In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MW Trade and All In
The main advantage of trading using opposite MW Trade and All In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MW Trade position performs unexpectedly, All In 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 All In will offset losses from the drop in All In's long position.| MW Trade vs. M Food SA | MW Trade vs. Echo Investment SA | MW Trade vs. Skyline Investment SA | MW Trade vs. PMPG Polskie Media |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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