Correlation Between Moens Bank and Investin Optimal
Can any of the company-specific risk be diversified away by investing in both Moens Bank and Investin Optimal 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 Moens Bank and Investin Optimal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moens Bank AS and Investin Optimal Stabil, you can compare the effects of market volatilities on Moens Bank and Investin Optimal 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 Moens Bank with a short position of Investin Optimal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moens Bank and Investin Optimal.
Diversification Opportunities for Moens Bank and Investin Optimal
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Moens and Investin is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Moens Bank AS and Investin Optimal Stabil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investin Optimal Stabil and Moens Bank 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 Moens Bank AS are associated (or correlated) with Investin Optimal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investin Optimal Stabil has no effect on the direction of Moens Bank i.e., Moens Bank and Investin Optimal go up and down completely randomly.
Pair Corralation between Moens Bank and Investin Optimal
Assuming the 90 days trading horizon Moens Bank AS is expected to under-perform the Investin Optimal. In addition to that, Moens Bank is 8.96 times more volatile than Investin Optimal Stabil. It trades about -0.01 of its total potential returns per unit of risk. Investin Optimal Stabil is currently generating about 0.08 per unit of volatility. If you would invest 14,763 in Investin Optimal Stabil on September 22, 2024 and sell it today you would earn a total of 60.00 from holding Investin Optimal Stabil or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Moens Bank AS vs. Investin Optimal Stabil
Performance |
| Timeline |
| Moens Bank AS |
| Investin Optimal Stabil |
Moens Bank and Investin Optimal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moens Bank and Investin Optimal
The main advantage of trading using opposite Moens Bank and Investin Optimal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moens Bank position performs unexpectedly, Investin Optimal 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 Investin Optimal will offset losses from the drop in Investin Optimal's long position.| Moens Bank vs. Novo Nordisk AS | Moens Bank vs. Scandinavian Tobacco Group | Moens Bank vs. ISS AS | Moens Bank vs. FLSmidth Co |
| Investin Optimal vs. PARKEN Sport Entertainment | Investin Optimal vs. Strategic Investments AS | Investin Optimal vs. Moens Bank AS | Investin Optimal vs. Sydbank 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |