Correlation Between Ultimate Games and Polska Grupa

Can any of the company-specific risk be diversified away by investing in both Ultimate Games and Polska Grupa 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 Ultimate Games and Polska Grupa into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ultimate Games SA and Polska Grupa Odlewnicza, you can compare the effects of market volatilities on Ultimate Games and Polska Grupa 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 Ultimate Games with a short position of Polska Grupa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimate Games and Polska Grupa.

Diversification Opportunities for Ultimate Games and Polska Grupa

0.0

Correlation Coefficient

Ultimate Games  Polska Grupa

Pay attention - limited upside

The 3 months correlation between Ultimate and Polska is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ultimate Games SA and Polska Grupa Odlewnicza in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polska Grupa Odlewnicza and Ultimate 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 Ultimate Games SA are associated (or correlated) with Polska Grupa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polska Grupa Odlewnicza has no effect on the direction of Ultimate Games i.e., Ultimate Games and Polska Grupa go up and down completely randomly.

Pair Corralation between Ultimate Games and Polska Grupa

If you would invest (100.00) in Polska Grupa Odlewnicza on October 9, 2024 and sell it today you would earn a total of  100.00  from holding Polska Grupa Odlewnicza or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ultimate Games SA  vs.  Polska Grupa Odlewnicza

Ultimate Games SA

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Ultimate Games 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 February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Polska Grupa Odlewnicza

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Polska Grupa Odlewnicza has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Polska Grupa is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Ultimate Games and Polska Grupa

The main advantage of trading using opposite Ultimate Games and Polska Grupa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultimate Games position performs unexpectedly, Polska Grupa 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 Polska Grupa will offset losses from the drop in Polska Grupa's long position.

The idea behind Ultimate Games SA and Polska Grupa Odlewnicza 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.