Correlation Between JT ARCH and Moneta Money
Can any of the company-specific risk be diversified away by investing in both JT ARCH 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 JT ARCH and Moneta Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JT ARCH INVESTMENTS and Moneta Money Bank, you can compare the effects of market volatilities on JT ARCH 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 JT ARCH with a short position of Moneta Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of JT ARCH and Moneta Money.
Diversification Opportunities for JT ARCH and Moneta Money
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JTINA and Moneta is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding JT ARCH INVESTMENTS 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 JT ARCH 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 JT ARCH INVESTMENTS 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 JT ARCH i.e., JT ARCH and Moneta Money go up and down completely randomly.
Pair Corralation between JT ARCH and Moneta Money
Assuming the 90 days trading horizon JT ARCH is expected to generate 3.47 times less return on investment than Moneta Money. But when comparing it to its historical volatility, JT ARCH INVESTMENTS is 4.73 times less risky than Moneta Money. It trades about 0.2 of its potential returns per unit of risk. Moneta Money Bank is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 9,500 in Moneta Money Bank on September 3, 2024 and sell it today you would earn a total of 2,800 from holding Moneta Money Bank or generate 29.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 86.49% |
| Values | Daily Returns |
JT ARCH INVESTMENTS vs. Moneta Money Bank
Performance |
| Timeline |
| JT ARCH INVESTMENTS |
| Moneta Money Bank |
JT ARCH and Moneta Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JT ARCH and Moneta Money
The main advantage of trading using opposite JT ARCH and Moneta Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JT ARCH 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.| JT ARCH vs. Cez AS | JT ARCH vs. Kofola CeskoSlovensko as | JT ARCH vs. Primoco UAV SE | JT ARCH vs. MT 1997 AS |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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