Correlation Between Poznanska Korporacja and M Food
Can any of the company-specific risk be diversified away by investing in both Poznanska Korporacja and M Food 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 Poznanska Korporacja and M Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Poznanska Korporacja Budowlana and M Food SA, you can compare the effects of market volatilities on Poznanska Korporacja and M Food 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 Poznanska Korporacja with a short position of M Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poznanska Korporacja and M Food.
Diversification Opportunities for Poznanska Korporacja and M Food
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Poznanska and MFD is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Poznanska Korporacja Budowlana and M Food SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M Food SA and Poznanska Korporacja 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 Poznanska Korporacja Budowlana are associated (or correlated) with M Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M Food SA has no effect on the direction of Poznanska Korporacja i.e., Poznanska Korporacja and M Food go up and down completely randomly.
Pair Corralation between Poznanska Korporacja and M Food
Assuming the 90 days trading horizon Poznanska Korporacja Budowlana is expected to generate 0.4 times more return on investment than M Food. However, Poznanska Korporacja Budowlana is 2.48 times less risky than M Food. It trades about -0.42 of its potential returns per unit of risk. M Food SA is currently generating about -0.41 per unit of risk. If you would invest 2,040 in Poznanska Korporacja Budowlana on September 13, 2024 and sell it today you would lose (310.00) from holding Poznanska Korporacja Budowlana or give up 15.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.17% |
| Values | Daily Returns |
Poznanska Korporacja Budowlana vs. M Food SA
Performance |
| Timeline |
| Poznanska Korporacja |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| M Food SA |
Poznanska Korporacja and M Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poznanska Korporacja and M Food
The main advantage of trading using opposite Poznanska Korporacja and M Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poznanska Korporacja position performs unexpectedly, M Food 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 M Food will offset losses from the drop in M Food's long position.| Poznanska Korporacja vs. CI Games SA | Poznanska Korporacja vs. Mercator Medical SA | Poznanska Korporacja vs. Inter Cars SA | Poznanska Korporacja vs. Biztech Konsulting SA |
| M Food vs. PMPG Polskie Media | M Food vs. GreenX Metals | M Food vs. MCI Management SA | M Food vs. X Trade Brokers |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |