Correlation Between Moneta Money and JT ARCH
Can any of the company-specific risk be diversified away by investing in both Moneta Money and JT ARCH 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 Moneta Money and JT ARCH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moneta Money Bank and JT ARCH INVESTMENTS, you can compare the effects of market volatilities on Moneta Money and JT ARCH 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 Moneta Money with a short position of JT ARCH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneta Money and JT ARCH.
Diversification Opportunities for Moneta Money and JT ARCH
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Moneta and JTINA is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Moneta Money Bank and JT ARCH INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JT ARCH INVESTMENTS and Moneta Money 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 Moneta Money Bank are associated (or correlated) with JT ARCH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JT ARCH INVESTMENTS has no effect on the direction of Moneta Money i.e., Moneta Money and JT ARCH go up and down completely randomly.
Pair Corralation between Moneta Money and JT ARCH
Assuming the 90 days trading horizon Moneta Money Bank is expected to generate 5.74 times more return on investment than JT ARCH. However, Moneta Money is 5.74 times more volatile than JT ARCH INVESTMENTS. It trades about 0.27 of its potential returns per unit of risk. JT ARCH INVESTMENTS is currently generating about 0.43 per unit of risk. If you would invest 12,380 in Moneta Money Bank on November 3, 2024 and sell it today you would earn a total of 1,340 from holding Moneta Money Bank or generate 10.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Moneta Money Bank vs. JT ARCH INVESTMENTS
Performance |
| Timeline |
| Moneta Money Bank |
| JT ARCH INVESTMENTS |
Moneta Money and JT ARCH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moneta Money and JT ARCH
The main advantage of trading using opposite Moneta Money and JT ARCH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moneta Money position performs unexpectedly, JT ARCH 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 JT ARCH will offset losses from the drop in JT ARCH's long position.| Moneta Money vs. Komercni Banka AS | Moneta Money vs. Cez AS | Moneta Money vs. Erste Group Bank | Moneta Money vs. Kofola CeskoSlovensko as |
| JT ARCH vs. Raiffeisen Bank International | JT ARCH vs. Komercni Banka AS | JT ARCH vs. Vienna Insurance Group | JT ARCH vs. Moneta Money Bank |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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