Correlation Between Monks Investment and Interpublic Group
Can any of the company-specific risk be diversified away by investing in both Monks Investment and Interpublic Group 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 Monks Investment and Interpublic Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monks Investment Trust and Interpublic Group of, you can compare the effects of market volatilities on Monks Investment and Interpublic Group 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 Monks Investment with a short position of Interpublic Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monks Investment and Interpublic Group.
Diversification Opportunities for Monks Investment and Interpublic Group
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Monks and Interpublic is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Monks Investment Trust and Interpublic Group of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interpublic Group and Monks Investment 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 Monks Investment Trust are associated (or correlated) with Interpublic Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interpublic Group has no effect on the direction of Monks Investment i.e., Monks Investment and Interpublic Group go up and down completely randomly.
Pair Corralation between Monks Investment and Interpublic Group
Assuming the 90 days trading horizon Monks Investment Trust is expected to generate 0.62 times more return on investment than Interpublic Group. However, Monks Investment Trust is 1.61 times less risky than Interpublic Group. It trades about 0.09 of its potential returns per unit of risk. Interpublic Group of is currently generating about 0.0 per unit of risk. If you would invest 103,798 in Monks Investment Trust on September 12, 2024 and sell it today you would earn a total of 23,402 from holding Monks Investment Trust or generate 22.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Monks Investment Trust vs. Interpublic Group of
Performance |
| Timeline |
| Monks Investment Trust |
| Interpublic Group |
Monks Investment and Interpublic Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monks Investment and Interpublic Group
The main advantage of trading using opposite Monks Investment and Interpublic Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monks Investment position performs unexpectedly, Interpublic Group 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 Interpublic Group will offset losses from the drop in Interpublic Group's long position.| Monks Investment vs. G5 Entertainment AB | Monks Investment vs. Planet Fitness Cl | Monks Investment vs. One Media iP | Monks Investment vs. CVS Health Corp |
| Interpublic Group vs. Livermore Investments Group | Interpublic Group vs. Lowland Investment Co | Interpublic Group vs. Baker Steel Resources | Interpublic Group vs. Monks Investment Trust |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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