Correlation Between HM Inwest and Monnari Trade
Can any of the company-specific risk be diversified away by investing in both HM Inwest and Monnari 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 HM Inwest and Monnari Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HM Inwest SA and Monnari Trade SA, you can compare the effects of market volatilities on HM Inwest and Monnari 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 HM Inwest with a short position of Monnari Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of HM Inwest and Monnari Trade.
Diversification Opportunities for HM Inwest and Monnari Trade
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HMI and Monnari is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding HM Inwest SA and Monnari Trade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monnari Trade SA and HM Inwest 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 HM Inwest SA are associated (or correlated) with Monnari Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monnari Trade SA has no effect on the direction of HM Inwest i.e., HM Inwest and Monnari Trade go up and down completely randomly.
Pair Corralation between HM Inwest and Monnari Trade
Assuming the 90 days trading horizon HM Inwest SA is expected to generate 1.54 times more return on investment than Monnari Trade. However, HM Inwest is 1.54 times more volatile than Monnari Trade SA. It trades about 0.02 of its potential returns per unit of risk. Monnari Trade SA is currently generating about -0.02 per unit of risk. If you would invest 4,710 in HM Inwest SA on September 1, 2024 and sell it today you would earn a total of 90.00 from holding HM Inwest SA or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
HM Inwest SA vs. Monnari Trade SA
Performance |
| Timeline |
| HM Inwest SA |
| Monnari Trade SA |
HM Inwest and Monnari Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HM Inwest and Monnari Trade
The main advantage of trading using opposite HM Inwest and Monnari Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HM Inwest position performs unexpectedly, Monnari 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 Monnari Trade will offset losses from the drop in Monnari Trade's long position.| HM Inwest vs. Mercator Medical SA | HM Inwest vs. Gaming Factory SA | HM Inwest vs. Intersport Polska SA | HM Inwest vs. CI Games SA |
| Monnari Trade vs. Skyline Investment SA | Monnari Trade vs. Varsav Game Studios | Monnari Trade vs. Carlson Investments SA | Monnari Trade vs. UF Games SA |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |