Correlation Between UF Games and PMPG Polskie
Can any of the company-specific risk be diversified away by investing in both UF Games and PMPG Polskie 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 UF Games and PMPG Polskie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UF Games SA and PMPG Polskie Media, you can compare the effects of market volatilities on UF Games and PMPG Polskie 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 UF Games with a short position of PMPG Polskie. Check out your portfolio center. Please also check ongoing floating volatility patterns of UF Games and PMPG Polskie.
Diversification Opportunities for UF Games and PMPG Polskie
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between UFG and PMPG is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding UF Games SA and PMPG Polskie Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PMPG Polskie Media and UF Games 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 UF Games SA are associated (or correlated) with PMPG Polskie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PMPG Polskie Media has no effect on the direction of UF Games i.e., UF Games and PMPG Polskie go up and down completely randomly.
Pair Corralation between UF Games and PMPG Polskie
Assuming the 90 days trading horizon UF Games SA is expected to generate 0.41 times more return on investment than PMPG Polskie. However, UF Games SA is 2.46 times less risky than PMPG Polskie. It trades about -0.33 of its potential returns per unit of risk. PMPG Polskie Media is currently generating about -0.32 per unit of risk. If you would invest 120.00 in UF Games SA on September 12, 2024 and sell it today you would lose (10.00) from holding UF Games SA or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 66.67% |
| Values | Daily Returns |
UF Games SA vs. PMPG Polskie Media
Performance |
| Timeline |
| UF Games SA |
| PMPG Polskie Media |
UF Games and PMPG Polskie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UF Games and PMPG Polskie
The main advantage of trading using opposite UF Games and PMPG Polskie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UF Games position performs unexpectedly, PMPG Polskie 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 PMPG Polskie will offset losses from the drop in PMPG Polskie's long position.| UF Games vs. Banco Santander SA | UF Games vs. UniCredit SpA | UF Games vs. CEZ as | UF Games vs. Polski Koncern Naftowy |
| PMPG Polskie vs. PZ Cormay SA | PMPG Polskie vs. Echo Investment SA | PMPG Polskie vs. Quantum Software SA | PMPG Polskie vs. Gaming Factory 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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