Correlation Between Moens Bank and TROPHY GAMES
Can any of the company-specific risk be diversified away by investing in both Moens Bank and TROPHY GAMES 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 TROPHY GAMES 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 TROPHY GAMES Development, you can compare the effects of market volatilities on Moens Bank and TROPHY GAMES 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 TROPHY GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moens Bank and TROPHY GAMES.
Diversification Opportunities for Moens Bank and TROPHY GAMES
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Moens and TROPHY is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Moens Bank AS and TROPHY GAMES Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TROPHY GAMES Development 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 TROPHY GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TROPHY GAMES Development has no effect on the direction of Moens Bank i.e., Moens Bank and TROPHY GAMES go up and down completely randomly.
Pair Corralation between Moens Bank and TROPHY GAMES
Assuming the 90 days trading horizon Moens Bank AS is expected to generate 0.72 times more return on investment than TROPHY GAMES. However, Moens Bank AS is 1.4 times less risky than TROPHY GAMES. It trades about 0.07 of its potential returns per unit of risk. TROPHY GAMES Development is currently generating about -0.11 per unit of risk. If you would invest 21,800 in Moens Bank AS on September 19, 2024 and sell it today you would earn a total of 600.00 from holding Moens Bank AS or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moens Bank AS vs. TROPHY GAMES Development
Performance |
| Timeline |
| Moens Bank AS |
| TROPHY GAMES Development |
Moens Bank and TROPHY GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moens Bank and TROPHY GAMES
The main advantage of trading using opposite Moens Bank and TROPHY GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moens Bank position performs unexpectedly, TROPHY GAMES 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 TROPHY GAMES will offset losses from the drop in TROPHY GAMES's long position.| Moens Bank vs. FLSmidth Co | Moens Bank vs. Danske Bank AS | Moens Bank vs. ISS AS | Moens Bank vs. DSV Panalpina AS |
| TROPHY GAMES vs. North Media AS | TROPHY GAMES vs. Bactiquant AS | TROPHY GAMES vs. FOM Technologies AS | TROPHY GAMES vs. MapsPeople 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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