Correlation Between MBank SA and Igoria Trade
Can any of the company-specific risk be diversified away by investing in both MBank SA and Igoria Trade 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 MBank SA and Igoria Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mBank SA and Igoria Trade SA, you can compare the effects of market volatilities on MBank SA and Igoria Trade 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 MBank SA with a short position of Igoria Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBank SA and Igoria Trade.
Diversification Opportunities for MBank SA and Igoria Trade
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between MBank and Igoria is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding mBank SA and Igoria Trade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Igoria Trade SA and MBank SA 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 mBank SA are associated (or correlated) with Igoria Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Igoria Trade SA has no effect on the direction of MBank SA i.e., MBank SA and Igoria Trade go up and down completely randomly.
Pair Corralation between MBank SA and Igoria Trade
Assuming the 90 days trading horizon mBank SA is expected to generate 0.85 times more return on investment than Igoria Trade. However, mBank SA is 1.17 times less risky than Igoria Trade. It trades about 0.27 of its potential returns per unit of risk. Igoria Trade SA is currently generating about -0.02 per unit of risk. If you would invest 54,000 in mBank SA on December 3, 2024 and sell it today you would earn a total of 20,020 from holding mBank SA or generate 37.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.31% |
Values | Daily Returns |
mBank SA vs. Igoria Trade SA
Performance |
Timeline |
mBank SA |
Igoria Trade SA |
MBank SA and Igoria Trade Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MBank SA and Igoria Trade
The main advantage of trading using opposite MBank SA and Igoria Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBank SA position performs unexpectedly, Igoria Trade 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 Igoria Trade will offset losses from the drop in Igoria Trade's long position.MBank SA vs. Road Studio SA | MBank SA vs. PZ Cormay SA | MBank SA vs. Creativeforge Games SA | MBank SA vs. Movie Games SA |
Igoria Trade vs. Alior Bank SA | Igoria Trade vs. ING Bank lski | Igoria Trade vs. SOFTWARE MANSION SPOLKA | Igoria Trade vs. Investment Friends Capital |
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.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |