Correlation Between Varsav Game and M Food
Can any of the company-specific risk be diversified away by investing in both Varsav Game 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 Varsav Game and M Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Varsav Game Studios and M Food SA, you can compare the effects of market volatilities on Varsav Game 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 Varsav Game with a short position of M Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Varsav Game and M Food.
Diversification Opportunities for Varsav Game and M Food
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Varsav and MFD is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Varsav Game Studios 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 Varsav Game 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 Varsav Game Studios 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 Varsav Game i.e., Varsav Game and M Food go up and down completely randomly.
Pair Corralation between Varsav Game and M Food
Assuming the 90 days trading horizon Varsav Game Studios is expected to generate 0.89 times more return on investment than M Food. However, Varsav Game Studios is 1.12 times less risky than M Food. It trades about -0.02 of its potential returns per unit of risk. M Food SA is currently generating about -0.07 per unit of risk. If you would invest 61.00 in Varsav Game Studios on September 3, 2024 and sell it today you would lose (13.00) from holding Varsav Game Studios or give up 21.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.46% |
| Values | Daily Returns |
Varsav Game Studios vs. M Food SA
Performance |
| Timeline |
| Varsav Game Studios |
| M Food SA |
Varsav Game and M Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Varsav Game and M Food
The main advantage of trading using opposite Varsav Game and M Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Varsav Game 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.| Varsav Game vs. Banco Santander SA | Varsav Game vs. UniCredit SpA | Varsav Game vs. CEZ as | Varsav Game vs. Polski Koncern Naftowy |
| M Food vs. Asseco Business Solutions | M Food vs. Kogeneracja SA | M Food vs. Asseco South Eastern | M Food vs. Movie Games 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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