Correlation Between Pyramid Games and MBank SA
Can any of the company-specific risk be diversified away by investing in both Pyramid Games and MBank SA 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 Pyramid Games and MBank SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pyramid Games SA and mBank SA, you can compare the effects of market volatilities on Pyramid Games and MBank SA 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 Pyramid Games with a short position of MBank SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pyramid Games and MBank SA.
Diversification Opportunities for Pyramid Games and MBank SA
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pyramid and MBank is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Pyramid Games SA and mBank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mBank SA and Pyramid 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 Pyramid Games SA are associated (or correlated) with MBank SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mBank SA has no effect on the direction of Pyramid Games i.e., Pyramid Games and MBank SA go up and down completely randomly.
Pair Corralation between Pyramid Games and MBank SA
Assuming the 90 days trading horizon Pyramid Games SA is expected to generate 1.48 times more return on investment than MBank SA. However, Pyramid Games is 1.48 times more volatile than mBank SA. It trades about -0.01 of its potential returns per unit of risk. mBank SA is currently generating about -0.23 per unit of risk. If you would invest 1,330 in Pyramid Games SA on August 30, 2024 and sell it today you would lose (20.00) from holding Pyramid Games SA or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Pyramid Games SA vs. mBank SA
Performance |
| Timeline |
| Pyramid Games SA |
| mBank SA |
Pyramid Games and MBank SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pyramid Games and MBank SA
The main advantage of trading using opposite Pyramid Games and MBank SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pyramid Games position performs unexpectedly, MBank SA 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 MBank SA will offset losses from the drop in MBank SA's long position.| Pyramid Games vs. Movie Games SA | Pyramid Games vs. Mlk Foods Public | Pyramid Games vs. Quantum Software SA | Pyramid Games vs. PLAYWAY SA |
| MBank SA vs. UniCredit SpA | MBank SA vs. Santander Bank Polska | MBank SA vs. Bank Polska Kasa | MBank SA 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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