Correlation Between Monks Investment and Prosiebensat
Can any of the company-specific risk be diversified away by investing in both Monks Investment and Prosiebensat 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 Prosiebensat 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 Prosiebensat 1 Media, you can compare the effects of market volatilities on Monks Investment and Prosiebensat 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 Prosiebensat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monks Investment and Prosiebensat.
Diversification Opportunities for Monks Investment and Prosiebensat
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Monks and Prosiebensat is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Monks Investment Trust and Prosiebensat 1 Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosiebensat 1 Media 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 Prosiebensat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosiebensat 1 Media has no effect on the direction of Monks Investment i.e., Monks Investment and Prosiebensat go up and down completely randomly.
Pair Corralation between Monks Investment and Prosiebensat
Assuming the 90 days trading horizon Monks Investment Trust is expected to generate 0.51 times more return on investment than Prosiebensat. However, Monks Investment Trust is 1.97 times less risky than Prosiebensat. It trades about 0.23 of its potential returns per unit of risk. Prosiebensat 1 Media is currently generating about 0.01 per unit of risk. If you would invest 126,800 in Monks Investment Trust on October 25, 2024 and sell it today you would earn a total of 5,200 from holding Monks Investment Trust or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monks Investment Trust vs. Prosiebensat 1 Media
Performance |
| Timeline |
| Monks Investment Trust |
| Prosiebensat 1 Media |
Monks Investment and Prosiebensat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monks Investment and Prosiebensat
The main advantage of trading using opposite Monks Investment and Prosiebensat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monks Investment position performs unexpectedly, Prosiebensat 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 Prosiebensat will offset losses from the drop in Prosiebensat's long position.| Monks Investment vs. European Metals Holdings | Monks Investment vs. CNH Industrial NV | Monks Investment vs. Thor Mining PLC | Monks Investment vs. Impax Asset Management |
| Prosiebensat vs. Verizon Communications | Prosiebensat vs. MoneysupermarketCom Group PLC | Prosiebensat vs. Zoom Video Communications | Prosiebensat vs. Cairo Communication SpA |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |