Correlation Between Maxcom SA and UF Games
Can any of the company-specific risk be diversified away by investing in both Maxcom SA and UF Games 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 Maxcom SA and UF Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maxcom SA and UF Games SA, you can compare the effects of market volatilities on Maxcom SA and UF Games 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 Maxcom SA with a short position of UF Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxcom SA and UF Games.
Diversification Opportunities for Maxcom SA and UF Games
Poor diversification
The 3 months correlation between Maxcom and UFG is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Maxcom SA and UF Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UF Games SA and Maxcom SA 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 Maxcom SA are associated (or correlated) with UF Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UF Games SA has no effect on the direction of Maxcom SA i.e., Maxcom SA and UF Games go up and down completely randomly.
Pair Corralation between Maxcom SA and UF Games
Assuming the 90 days trading horizon Maxcom SA is expected to generate 0.9 times more return on investment than UF Games. However, Maxcom SA is 1.11 times less risky than UF Games. It trades about -0.12 of its potential returns per unit of risk. UF Games SA is currently generating about -0.43 per unit of risk. If you would invest 862.00 in Maxcom SA on August 30, 2024 and sell it today you would lose (28.00) from holding Maxcom SA or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 80.0% |
| Values | Daily Returns |
Maxcom SA vs. UF Games SA
Performance |
| Timeline |
| Maxcom SA |
| UF Games SA |
Maxcom SA and UF Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxcom SA and UF Games
The main advantage of trading using opposite Maxcom SA and UF Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxcom SA position performs unexpectedly, UF Games 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 UF Games will offset losses from the drop in UF Games' long position.| Maxcom SA vs. UF Games SA | Maxcom SA vs. Kool2play SA | Maxcom SA vs. TEN SQUARE GAMES | Maxcom SA vs. 3R Games SA |
| UF Games vs. Banco Santander SA | UF Games vs. UniCredit SpA | UF Games vs. CEZ as | UF Games vs. Polski Koncern Naftowy |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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