Correlation Between Moneta Money and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both Moneta Money and Komercni Banka 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 Komercni Banka 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 Komercni Banka AS, you can compare the effects of market volatilities on Moneta Money and Komercni Banka 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 Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneta Money and Komercni Banka.
Diversification Opportunities for Moneta Money and Komercni Banka
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Moneta and Komercni is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Moneta Money Bank and Komercni Banka AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka AS 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 Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka AS has no effect on the direction of Moneta Money i.e., Moneta Money and Komercni Banka go up and down completely randomly.
Pair Corralation between Moneta Money and Komercni Banka
Assuming the 90 days trading horizon Moneta Money Bank is expected to generate 2.92 times more return on investment than Komercni Banka. However, Moneta Money is 2.92 times more volatile than Komercni Banka AS. It trades about 0.27 of its potential returns per unit of risk. Komercni Banka AS is currently generating about 0.32 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moneta Money Bank vs. Komercni Banka AS
Performance |
| Timeline |
| Moneta Money Bank |
| Komercni Banka AS |
Moneta Money and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moneta Money and Komercni Banka
The main advantage of trading using opposite Moneta Money and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moneta Money position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka'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 |
| Komercni Banka vs. Cez AS | Komercni Banka vs. Moneta Money Bank | Komercni Banka vs. Erste Group Bank | Komercni Banka vs. Philip Morris CR |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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