Correlation Between PMPG Polskie and Logintrade
Can any of the company-specific risk be diversified away by investing in both PMPG Polskie and Logintrade 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 Logintrade 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 Logintrade SA, you can compare the effects of market volatilities on PMPG Polskie and Logintrade 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 Logintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of PMPG Polskie and Logintrade.
Diversification Opportunities for PMPG Polskie and Logintrade
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PMPG and Logintrade is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding PMPG Polskie Media and Logintrade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logintrade 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 Logintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logintrade SA has no effect on the direction of PMPG Polskie i.e., PMPG Polskie and Logintrade go up and down completely randomly.
Pair Corralation between PMPG Polskie and Logintrade
Assuming the 90 days trading horizon PMPG Polskie Media is expected to under-perform the Logintrade. But the stock apears to be less risky and, when comparing its historical volatility, PMPG Polskie Media is 1.65 times less risky than Logintrade. The stock trades about -0.02 of its potential returns per unit of risk. The Logintrade SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 110.00 in Logintrade SA on September 3, 2024 and sell it today you would earn a total of 238.00 from holding Logintrade SA or generate 216.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 74.95% |
| Values | Daily Returns |
PMPG Polskie Media vs. Logintrade SA
Performance |
| Timeline |
| PMPG Polskie Media |
| Logintrade SA |
PMPG Polskie and Logintrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PMPG Polskie and Logintrade
The main advantage of trading using opposite PMPG Polskie and Logintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PMPG Polskie position performs unexpectedly, Logintrade 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 Logintrade will offset losses from the drop in Logintrade's long position.| PMPG Polskie vs. Asseco Business Solutions | PMPG Polskie vs. Detalion Games SA | PMPG Polskie vs. Kogeneracja SA | PMPG Polskie vs. Asseco South Eastern |
| Logintrade vs. Drago entertainment SA | Logintrade vs. GreenX Metals | Logintrade vs. Quantum Software SA | Logintrade vs. Cloud Technologies SA |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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