Correlation Between Monster Beverage and SDAX Index
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By analyzing existing cross correlation between Monster Beverage Corp and SDAX Index, you can compare the effects of market volatilities on Monster Beverage and SDAX Index 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 Monster Beverage with a short position of SDAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monster Beverage and SDAX Index.
Diversification Opportunities for Monster Beverage and SDAX Index
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Monster and SDAX is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Monster Beverage Corp and SDAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDAX Index and Monster Beverage 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 Monster Beverage Corp are associated (or correlated) with SDAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDAX Index has no effect on the direction of Monster Beverage i.e., Monster Beverage and SDAX Index go up and down completely randomly.
Pair Corralation between Monster Beverage and SDAX Index
Assuming the 90 days trading horizon Monster Beverage Corp is expected to generate 1.76 times more return on investment than SDAX Index. However, Monster Beverage is 1.76 times more volatile than SDAX Index. It trades about 0.05 of its potential returns per unit of risk. SDAX Index is currently generating about -0.08 per unit of risk. If you would invest 4,792 in Monster Beverage Corp on September 1, 2024 and sell it today you would earn a total of 443.00 from holding Monster Beverage Corp or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Monster Beverage Corp vs. SDAX Index
Performance |
| Timeline |
Monster Beverage and SDAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Monster Beverage Corp
Pair trading matchups for Monster Beverage
SDAX Index
Pair trading matchups for SDAX Index
Pair Trading with Monster Beverage and SDAX Index
The main advantage of trading using opposite Monster Beverage and SDAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monster Beverage position performs unexpectedly, SDAX Index 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 SDAX Index will offset losses from the drop in SDAX Index's long position.| Monster Beverage vs. SIVERS SEMICONDUCTORS AB | Monster Beverage vs. Darden Restaurants | Monster Beverage vs. Reliance Steel Aluminum | Monster Beverage vs. Q2M Managementberatung AG |
| SDAX Index vs. National Retail Properties | SDAX Index vs. Canon Marketing Japan | SDAX Index vs. SERI INDUSTRIAL EO | SDAX Index vs. GREENX METALS LTD |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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