Correlation Between Carnegie Wealth and Moens Bank
Can any of the company-specific risk be diversified away by investing in both Carnegie Wealth and Moens Bank 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 Carnegie Wealth and Moens Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Wealth Management and Moens Bank AS, you can compare the effects of market volatilities on Carnegie Wealth and Moens Bank 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 Carnegie Wealth with a short position of Moens Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Wealth and Moens Bank.
Diversification Opportunities for Carnegie Wealth and Moens Bank
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carnegie and Moens is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Wealth Management and Moens Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moens Bank AS and Carnegie Wealth 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 Carnegie Wealth Management are associated (or correlated) with Moens Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moens Bank AS has no effect on the direction of Carnegie Wealth i.e., Carnegie Wealth and Moens Bank go up and down completely randomly.
Pair Corralation between Carnegie Wealth and Moens Bank
Assuming the 90 days trading horizon Carnegie Wealth is expected to generate 1.66 times less return on investment than Moens Bank. But when comparing it to its historical volatility, Carnegie Wealth Management is 1.12 times less risky than Moens Bank. It trades about 0.01 of its potential returns per unit of risk. Moens Bank AS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 20,600 in Moens Bank AS on August 29, 2024 and sell it today you would earn a total of 1,400 from holding Moens Bank AS or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.47% |
| Values | Daily Returns |
Carnegie Wealth Management vs. Moens Bank AS
Performance |
| Timeline |
| Carnegie Wealth Mana |
| Moens Bank AS |
Carnegie Wealth and Moens Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Wealth and Moens Bank
The main advantage of trading using opposite Carnegie Wealth and Moens Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Wealth position performs unexpectedly, Moens Bank 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 Moens Bank will offset losses from the drop in Moens Bank's long position.| Carnegie Wealth vs. Strategic Investments AS | Carnegie Wealth vs. TROPHY GAMES Development | Carnegie Wealth vs. Ringkjoebing Landbobank AS | Carnegie Wealth vs. Sydbank AS |
| Moens Bank vs. Skjern Bank AS | Moens Bank vs. Lollands Bank | Moens Bank vs. Nordfyns Bank AS | Moens Bank vs. Groenlandsbanken 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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