Correlation Between PMPG Polskie and M Food
Can any of the company-specific risk be diversified away by investing in both PMPG Polskie 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 PMPG Polskie and M Food 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 M Food SA, you can compare the effects of market volatilities on PMPG Polskie 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 PMPG Polskie with a short position of M Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of PMPG Polskie and M Food.
Diversification Opportunities for PMPG Polskie and M Food
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between PMPG and MFD is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding PMPG Polskie Media 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 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 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 PMPG Polskie i.e., PMPG Polskie and M Food go up and down completely randomly.
Pair Corralation between PMPG Polskie and M Food
Assuming the 90 days trading horizon PMPG Polskie Media is expected to generate 1.07 times more return on investment than M Food. However, PMPG Polskie is 1.07 times more volatile than M Food SA. It trades about -0.32 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 252.00 in PMPG Polskie Media on September 14, 2024 and sell it today you would lose (72.00) from holding PMPG Polskie Media or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.55% |
| Values | Daily Returns |
PMPG Polskie Media vs. M Food SA
Performance |
| Timeline |
| PMPG Polskie Media |
| M Food SA |
PMPG Polskie and M Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PMPG Polskie and M Food
The main advantage of trading using opposite PMPG Polskie and M Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PMPG Polskie 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.| PMPG Polskie vs. Centrum Finansowe Banku | PMPG Polskie vs. Biztech Konsulting SA | PMPG Polskie vs. Asseco South Eastern | PMPG Polskie vs. Vercom 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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