Correlation Between PMPG Polskie and Kruk SA
Can any of the company-specific risk be diversified away by investing in both PMPG Polskie and Kruk 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 PMPG Polskie and Kruk SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PMPG Polskie Media and Kruk SA, you can compare the effects of market volatilities on PMPG Polskie and Kruk 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 PMPG Polskie with a short position of Kruk SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PMPG Polskie and Kruk SA.
Diversification Opportunities for PMPG Polskie and Kruk SA
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PMPG and Kruk is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding PMPG Polskie Media and Kruk SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kruk SA and PMPG Polskie 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 PMPG Polskie Media are associated (or correlated) with Kruk SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kruk SA has no effect on the direction of PMPG Polskie i.e., PMPG Polskie and Kruk SA go up and down completely randomly.
Pair Corralation between PMPG Polskie and Kruk SA
Assuming the 90 days trading horizon PMPG Polskie Media is expected to under-perform the Kruk SA. In addition to that, PMPG Polskie is 3.57 times more volatile than Kruk SA. It trades about -0.27 of its total potential returns per unit of risk. Kruk SA is currently generating about -0.07 per unit of volatility. If you would invest 42,960 in Kruk SA on August 29, 2024 and sell it today you would lose (960.00) from holding Kruk SA or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PMPG Polskie Media vs. Kruk SA
Performance |
| Timeline |
| PMPG Polskie Media |
| Kruk SA |
PMPG Polskie and Kruk SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PMPG Polskie and Kruk SA
The main advantage of trading using opposite PMPG Polskie and Kruk SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PMPG Polskie position performs unexpectedly, Kruk 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 Kruk SA will offset losses from the drop in Kruk SA's long position.| PMPG Polskie vs. Monnari Trade SA | PMPG Polskie vs. MW Trade SA | PMPG Polskie vs. Pixel Crow Games | PMPG Polskie vs. Mlk Foods Public |
| Kruk SA vs. PMPG Polskie Media | Kruk SA vs. Movie Games SA | Kruk SA vs. Road Studio SA | Kruk SA vs. True Games Syndicate |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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