Correlation Between Globe Trade and PMPG Polskie
Can any of the company-specific risk be diversified away by investing in both Globe Trade 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 Globe Trade and PMPG Polskie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Trade Centre and PMPG Polskie Media, you can compare the effects of market volatilities on Globe Trade 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 Globe Trade with a short position of PMPG Polskie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and PMPG Polskie.
Diversification Opportunities for Globe Trade and PMPG Polskie
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Globe and PMPG is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre 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 Globe Trade 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 Globe Trade Centre 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 Globe Trade i.e., Globe Trade and PMPG Polskie go up and down completely randomly.
Pair Corralation between Globe Trade and PMPG Polskie
Assuming the 90 days trading horizon Globe Trade Centre is expected to under-perform the PMPG Polskie. But the stock apears to be less risky and, when comparing its historical volatility, Globe Trade Centre is 1.67 times less risky than PMPG Polskie. The stock trades about -0.02 of its potential returns per unit of risk. The PMPG Polskie Media is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 177.00 in PMPG Polskie Media on December 30, 2024 and sell it today you would earn a total of 21.00 from holding PMPG Polskie Media or generate 11.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Globe Trade Centre vs. PMPG Polskie Media
Performance |
Timeline |
Globe Trade Centre |
PMPG Polskie Media |
Globe Trade and PMPG Polskie Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Globe Trade and PMPG Polskie
The main advantage of trading using opposite Globe Trade and PMPG Polskie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade 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.Globe Trade vs. True Games Syndicate | Globe Trade vs. UniCredit SpA | Globe Trade vs. Examobile SA | Globe Trade vs. Ultimate Games SA |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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