Correlation Between Monnari Trade and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both Monnari Trade and TEN SQUARE 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 Monnari Trade and TEN SQUARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monnari Trade SA and TEN SQUARE GAMES, you can compare the effects of market volatilities on Monnari Trade and TEN SQUARE 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 Monnari Trade with a short position of TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monnari Trade and TEN SQUARE.
Diversification Opportunities for Monnari Trade and TEN SQUARE
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Monnari and TEN is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Monnari Trade SA and TEN SQUARE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEN SQUARE GAMES and Monnari Trade 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 Monnari Trade SA are associated (or correlated) with TEN SQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEN SQUARE GAMES has no effect on the direction of Monnari Trade i.e., Monnari Trade and TEN SQUARE go up and down completely randomly.
Pair Corralation between Monnari Trade and TEN SQUARE
Assuming the 90 days trading horizon Monnari Trade SA is expected to generate 0.99 times more return on investment than TEN SQUARE. However, Monnari Trade SA is 1.01 times less risky than TEN SQUARE. It trades about -0.01 of its potential returns per unit of risk. TEN SQUARE GAMES is currently generating about -0.05 per unit of risk. If you would invest 570.00 in Monnari Trade SA on August 25, 2024 and sell it today you would lose (20.00) from holding Monnari Trade SA or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Monnari Trade SA vs. TEN SQUARE GAMES
Performance |
| Timeline |
| Monnari Trade SA |
| TEN SQUARE GAMES |
Monnari Trade and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monnari Trade and TEN SQUARE
The main advantage of trading using opposite Monnari Trade and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monnari Trade position performs unexpectedly, TEN SQUARE 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 TEN SQUARE will offset losses from the drop in TEN SQUARE's long position.| Monnari Trade vs. LPP SA | Monnari Trade vs. Esotiq Henderson SA | Monnari Trade vs. Asseco Business Solutions | Monnari Trade vs. Detalion Games SA |
| TEN SQUARE vs. CD PROJEKT SA | TEN SQUARE vs. 11 bit studios | TEN SQUARE vs. Movie Games SA | TEN SQUARE vs. Ultimate Games SA |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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