Correlation Between Cez AS and Moneta Money
Can any of the company-specific risk be diversified away by investing in both Cez AS and Moneta Money 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 Cez AS and Moneta Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cez AS and Moneta Money Bank, you can compare the effects of market volatilities on Cez AS and Moneta Money 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 Cez AS with a short position of Moneta Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cez AS and Moneta Money.
Diversification Opportunities for Cez AS and Moneta Money
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cez and Moneta is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Cez AS and Moneta Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moneta Money Bank and Cez AS 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 Cez AS are associated (or correlated) with Moneta Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moneta Money Bank has no effect on the direction of Cez AS i.e., Cez AS and Moneta Money go up and down completely randomly.
Pair Corralation between Cez AS and Moneta Money
Assuming the 90 days trading horizon Cez AS is expected to generate 1.09 times less return on investment than Moneta Money. But when comparing it to its historical volatility, Cez AS is 1.26 times less risky than Moneta Money. It trades about 0.31 of its potential returns per unit of risk. Moneta Money Bank is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 12,380 in Moneta Money Bank on November 3, 2024 and sell it today you would earn a total of 1,340 from holding Moneta Money Bank or generate 10.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cez AS vs. Moneta Money Bank
Performance |
| Timeline |
| Cez AS |
| Moneta Money Bank |
Cez AS and Moneta Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cez AS and Moneta Money
The main advantage of trading using opposite Cez AS and Moneta Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cez AS position performs unexpectedly, Moneta Money 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 Moneta Money will offset losses from the drop in Moneta Money's long position.| Cez AS vs. Komercni Banka AS | Cez AS vs. Moneta Money Bank | Cez AS vs. Erste Group Bank | Cez AS vs. Colt CZ Group |
| Moneta Money vs. Komercni Banka AS | Moneta Money vs. Cez AS | Moneta Money vs. Erste Group Bank | Moneta Money vs. Kofola CeskoSlovensko as |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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