Correlation Between TEN SQUARE and M Food
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE 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 TEN SQUARE and M Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEN SQUARE GAMES and M Food SA, you can compare the effects of market volatilities on TEN SQUARE 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 TEN SQUARE with a short position of M Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and M Food.
Diversification Opportunities for TEN SQUARE and M Food
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TEN and MFD is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES 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 TEN SQUARE 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 TEN SQUARE GAMES 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 TEN SQUARE i.e., TEN SQUARE and M Food go up and down completely randomly.
Pair Corralation between TEN SQUARE and M Food
Assuming the 90 days trading horizon TEN SQUARE is expected to generate 4.42 times less return on investment than M Food. But when comparing it to its historical volatility, TEN SQUARE GAMES is 2.35 times less risky than M Food. It trades about 0.06 of its potential returns per unit of risk. M Food SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 81.00 in M Food SA on November 3, 2024 and sell it today you would earn a total of 8.00 from holding M Food SA or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. M Food SA
Performance |
| Timeline |
| TEN SQUARE GAMES |
| M Food SA |
TEN SQUARE and M Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and M Food
The main advantage of trading using opposite TEN SQUARE and M Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE 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.| TEN SQUARE vs. CD PROJEKT SA | TEN SQUARE vs. PLAYWAY SA | TEN SQUARE vs. 11 bit studios | TEN SQUARE vs. CI Games SA |
| M Food vs. Asseco Business Solutions | M Food vs. Detalion Games SA | M Food vs. Movie Games SA | M Food vs. Altustfi |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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