Correlation Between Moderna and United States
Can any of the company-specific risk be diversified away by investing in both Moderna and United States 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 Moderna and United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moderna and United States Steel, you can compare the effects of market volatilities on Moderna and United States 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 Moderna with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moderna and United States.
Diversification Opportunities for Moderna and United States
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Moderna and United is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Moderna and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel and Moderna 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 Moderna are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of Moderna i.e., Moderna and United States go up and down completely randomly.
Pair Corralation between Moderna and United States
Assuming the 90 days trading horizon Moderna is expected to under-perform the United States. In addition to that, Moderna is 1.02 times more volatile than United States Steel. It trades about -0.06 of its total potential returns per unit of risk. United States Steel is currently generating about 0.05 per unit of volatility. If you would invest 13,894 in United States Steel on August 28, 2024 and sell it today you would earn a total of 8,660 from holding United States Steel or generate 62.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.23% |
| Values | Daily Returns |
Moderna vs. United States Steel
Performance |
| Timeline |
| Moderna |
| United States Steel |
Moderna and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moderna and United States
The main advantage of trading using opposite Moderna and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moderna position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Moderna vs. Charter Communications | Moderna vs. Take Two Interactive Software | Moderna vs. UnitedHealth Group Incorporated | Moderna vs. The Trade Desk |
| United States vs. Companhia Siderrgica Nacional | United States vs. Fras le SA | United States vs. Clave Indices De | United States vs. BTG Pactual Logstica |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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