Correlation Between PMPG Polskie and Medicalg
Can any of the company-specific risk be diversified away by investing in both PMPG Polskie and Medicalg 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 Medicalg 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 Medicalg, you can compare the effects of market volatilities on PMPG Polskie and Medicalg 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 Medicalg. Check out your portfolio center. Please also check ongoing floating volatility patterns of PMPG Polskie and Medicalg.
Diversification Opportunities for PMPG Polskie and Medicalg
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PMPG and Medicalg is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding PMPG Polskie Media and Medicalg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medicalg 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 Medicalg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medicalg has no effect on the direction of PMPG Polskie i.e., PMPG Polskie and Medicalg go up and down completely randomly.
Pair Corralation between PMPG Polskie and Medicalg
Assuming the 90 days trading horizon PMPG Polskie Media is expected to under-perform the Medicalg. But the stock apears to be less risky and, when comparing its historical volatility, PMPG Polskie Media is 1.47 times less risky than Medicalg. The stock trades about -0.14 of its potential returns per unit of risk. The Medicalg is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,524 in Medicalg on November 28, 2024 and sell it today you would earn a total of 212.00 from holding Medicalg or generate 8.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PMPG Polskie Media vs. Medicalg
Performance |
| Timeline |
| PMPG Polskie Media |
| Medicalg |
PMPG Polskie and Medicalg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PMPG Polskie and Medicalg
The main advantage of trading using opposite PMPG Polskie and Medicalg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PMPG Polskie position performs unexpectedly, Medicalg 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 Medicalg will offset losses from the drop in Medicalg's long position.| PMPG Polskie vs. LSI Software SA | PMPG Polskie vs. Play2Chill SA | PMPG Polskie vs. BNP Paribas Bank | PMPG Polskie vs. Investment Friends Capital |
| Medicalg vs. Movie Games SA | Medicalg vs. Play2Chill SA | Medicalg vs. Quantum Software SA | Medicalg vs. BNP Paribas Bank |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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