Correlation Between Intermediate Capital and Moneta Money
Can any of the company-specific risk be diversified away by investing in both Intermediate Capital 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 Intermediate Capital and Moneta Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermediate Capital Group and Moneta Money Bank, you can compare the effects of market volatilities on Intermediate Capital 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 Intermediate Capital with a short position of Moneta Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Capital and Moneta Money.
Diversification Opportunities for Intermediate Capital and Moneta Money
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Intermediate and Moneta is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Capital Group 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 Intermediate Capital 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 Intermediate Capital Group 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 Intermediate Capital i.e., Intermediate Capital and Moneta Money go up and down completely randomly.
Pair Corralation between Intermediate Capital and Moneta Money
If you would invest 8,245 in Moneta Money Bank on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Moneta Money Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Intermediate Capital Group vs. Moneta Money Bank
Performance |
| Timeline |
| Intermediate Capital |
| Moneta Money Bank |
Intermediate Capital and Moneta Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Capital and Moneta Money
The main advantage of trading using opposite Intermediate Capital and Moneta Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Capital 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.| Intermediate Capital vs. European Metals Holdings | Intermediate Capital vs. Broadridge Financial Solutions | Intermediate Capital vs. Broadcom | Intermediate Capital vs. Europa Metals |
| Moneta Money vs. CleanTech Lithium plc | Moneta Money vs. Everyman Media Group | Moneta Money vs. Universal Music Group | Moneta Money vs. Intermediate Capital Group |
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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