Correlation Between Bank Millennium and Monnari Trade
Can any of the company-specific risk be diversified away by investing in both Bank Millennium 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 Bank Millennium and Monnari Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Millennium SA and Monnari Trade SA, you can compare the effects of market volatilities on Bank Millennium 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 Bank Millennium with a short position of Monnari Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Millennium and Monnari Trade.
Diversification Opportunities for Bank Millennium and Monnari Trade
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Monnari is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bank Millennium 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 Bank Millennium 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 Bank Millennium 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 Bank Millennium i.e., Bank Millennium and Monnari Trade go up and down completely randomly.
Pair Corralation between Bank Millennium and Monnari Trade
Assuming the 90 days trading horizon Bank Millennium SA is expected to generate 1.31 times more return on investment than Monnari Trade. However, Bank Millennium is 1.31 times more volatile than Monnari Trade SA. It trades about 0.08 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 456.00 in Bank Millennium SA on September 2, 2024 and sell it today you would earn a total of 388.00 from holding Bank Millennium SA or generate 85.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Millennium SA vs. Monnari Trade SA
Performance |
| Timeline |
| Bank Millennium SA |
| Monnari Trade SA |
Bank Millennium and Monnari Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Millennium and Monnari Trade
The main advantage of trading using opposite Bank Millennium and Monnari Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Millennium 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.The idea behind Bank Millennium SA and Monnari Trade SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Monnari Trade vs. TEN SQUARE GAMES | Monnari Trade vs. GreenX Metals | Monnari Trade vs. True Games Syndicate | Monnari Trade vs. SOFTWARE MANSION SPOLKA |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |