Correlation Between TEN SQUARE and Mlk Foods
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE and Mlk Foods 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 Mlk Foods 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 Mlk Foods Public, you can compare the effects of market volatilities on TEN SQUARE and Mlk Foods 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 Mlk Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and Mlk Foods.
Diversification Opportunities for TEN SQUARE and Mlk Foods
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between TEN and Mlk is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and Mlk Foods Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mlk Foods Public 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 Mlk Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mlk Foods Public has no effect on the direction of TEN SQUARE i.e., TEN SQUARE and Mlk Foods go up and down completely randomly.
Pair Corralation between TEN SQUARE and Mlk Foods
Assuming the 90 days trading horizon TEN SQUARE GAMES is expected to under-perform the Mlk Foods. But the stock apears to be less risky and, when comparing its historical volatility, TEN SQUARE GAMES is 2.24 times less risky than Mlk Foods. The stock trades about -0.02 of its potential returns per unit of risk. The Mlk Foods Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 103.00 in Mlk Foods Public on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Mlk Foods Public or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. Mlk Foods Public
Performance |
| Timeline |
| TEN SQUARE GAMES |
| Mlk Foods Public |
TEN SQUARE and Mlk Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and Mlk Foods
The main advantage of trading using opposite TEN SQUARE and Mlk Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE position performs unexpectedly, Mlk Foods 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 Mlk Foods will offset losses from the drop in Mlk Foods' long position.| TEN SQUARE vs. Enter Air SA | TEN SQUARE vs. Mlk Foods Public | TEN SQUARE vs. Live Motion Games | TEN SQUARE vs. Intersport Polska SA |
| Mlk Foods vs. Vercom SA | Mlk Foods vs. CFI Holding SA | Mlk Foods vs. Gobarto SA | Mlk Foods vs. Beta mWIG40TR Portfelowy |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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