Correlation Between Monks Investment and Various Eateries
Can any of the company-specific risk be diversified away by investing in both Monks Investment and Various Eateries 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 Various Eateries 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 Various Eateries PLC, you can compare the effects of market volatilities on Monks Investment and Various Eateries 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 Various Eateries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monks Investment and Various Eateries.
Diversification Opportunities for Monks Investment and Various Eateries
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Monks and Various is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Monks Investment Trust and Various Eateries PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Various Eateries PLC 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 Various Eateries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Various Eateries PLC has no effect on the direction of Monks Investment i.e., Monks Investment and Various Eateries go up and down completely randomly.
Pair Corralation between Monks Investment and Various Eateries
Assuming the 90 days trading horizon Monks Investment Trust is expected to generate 0.66 times more return on investment than Various Eateries. However, Monks Investment Trust is 1.52 times less risky than Various Eateries. It trades about 0.07 of its potential returns per unit of risk. Various Eateries PLC is currently generating about -0.09 per unit of risk. If you would invest 100,890 in Monks Investment Trust on September 12, 2024 and sell it today you would earn a total of 26,310 from holding Monks Investment Trust or generate 26.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monks Investment Trust vs. Various Eateries PLC
Performance |
| Timeline |
| Monks Investment Trust |
| Various Eateries PLC |
Monks Investment and Various Eateries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monks Investment and Various Eateries
The main advantage of trading using opposite Monks Investment and Various Eateries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monks Investment position performs unexpectedly, Various Eateries 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 Various Eateries will offset losses from the drop in Various Eateries' 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 |
| Various Eateries vs. National Atomic Co | Various Eateries vs. OTP Bank Nyrt | Various Eateries vs. Samsung Electronics Co | Various Eateries vs. Samsung Electronics Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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