Correlation Between Mene and GoldMoney
Can any of the company-specific risk be diversified away by investing in both Mene and GoldMoney 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 Mene and GoldMoney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mene Inc and GoldMoney, you can compare the effects of market volatilities on Mene and GoldMoney 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 Mene with a short position of GoldMoney. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mene and GoldMoney.
Diversification Opportunities for Mene and GoldMoney
Very good diversification
The 3 months correlation between Mene and GoldMoney is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mene Inc and GoldMoney in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoldMoney and Mene 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 Mene Inc are associated (or correlated) with GoldMoney. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoldMoney has no effect on the direction of Mene i.e., Mene and GoldMoney go up and down completely randomly.
Pair Corralation between Mene and GoldMoney
Assuming the 90 days horizon Mene Inc is expected to under-perform the GoldMoney. In addition to that, Mene is 2.82 times more volatile than GoldMoney. It trades about -0.01 of its total potential returns per unit of risk. GoldMoney is currently generating about 0.0 per unit of volatility. If you would invest 910.00 in GoldMoney on August 27, 2024 and sell it today you would lose (92.00) from holding GoldMoney or give up 10.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mene Inc vs. GoldMoney
Performance |
| Timeline |
| Mene Inc |
| GoldMoney |
Mene and GoldMoney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mene and GoldMoney
The main advantage of trading using opposite Mene and GoldMoney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mene position performs unexpectedly, GoldMoney 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 GoldMoney will offset losses from the drop in GoldMoney's long position.| Mene vs. Lanvin Group Holdings | Mene vs. MYT Netherlands Parent | Mene vs. Movado Group | Mene vs. Birks Group |
| GoldMoney vs. GoldMoney | GoldMoney vs. Mene Inc | GoldMoney vs. Wesdome Gold Mines | GoldMoney vs. GoldMining |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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