Correlation Between Igoria Trade and PMPG Polskie

Can any of the company-specific risk be diversified away by investing in both Igoria 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 Igoria 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 Igoria Trade SA and PMPG Polskie Media, you can compare the effects of market volatilities on Igoria 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 Igoria Trade with a short position of PMPG Polskie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Igoria Trade and PMPG Polskie.

Diversification Opportunities for Igoria Trade and PMPG Polskie

-0.06

Correlation Coefficient

Igoria Trade  PMPG Polskie

Good diversification

The 3 months correlation between Igoria and PMPG is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Igoria Trade 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 Igoria 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 Igoria Trade 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 Igoria Trade i.e., Igoria Trade and PMPG Polskie go up and down completely randomly.

Pair Corralation between Igoria Trade and PMPG Polskie

Assuming the 90 days trading horizon Igoria Trade SA is expected to under-perform the PMPG Polskie. But the stock apears to be less risky and, when comparing its historical volatility, Igoria Trade SA is 1.02 times less risky than PMPG Polskie. The stock trades about -0.12 of its potential returns per unit of risk. The PMPG Polskie Media is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  180.00  in PMPG Polskie Media on December 21, 2024 and sell it today you would earn a total of  8.00  from holding PMPG Polskie Media or generate 4.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Igoria Trade SA  vs.  PMPG Polskie Media

Igoria Trade SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Igoria Trade SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

PMPG Polskie Media

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PMPG Polskie Media are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, PMPG Polskie may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Igoria Trade and PMPG Polskie

The main advantage of trading using opposite Igoria Trade and PMPG Polskie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Igoria 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.

The idea behind Igoria Trade SA and PMPG Polskie Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.