Correlation Between Moneta Money and Photon Energy
Can any of the company-specific risk be diversified away by investing in both Moneta Money and Photon Energy 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 Photon Energy 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 Photon Energy NV, you can compare the effects of market volatilities on Moneta Money and Photon Energy 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 Photon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneta Money and Photon Energy.
Diversification Opportunities for Moneta Money and Photon Energy
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Moneta and Photon is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Moneta Money Bank and Photon Energy NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photon Energy NV 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 Photon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photon Energy NV has no effect on the direction of Moneta Money i.e., Moneta Money and Photon Energy go up and down completely randomly.
Pair Corralation between Moneta Money and Photon Energy
Assuming the 90 days trading horizon Moneta Money Bank is expected to generate 0.61 times more return on investment than Photon Energy. However, Moneta Money Bank is 1.65 times less risky than Photon Energy. It trades about 0.17 of its potential returns per unit of risk. Photon Energy NV is currently generating about 0.05 per unit of risk. If you would invest 12,460 in Moneta Money Bank on November 3, 2024 and sell it today you would earn a total of 1,260 from holding Moneta Money Bank or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
Moneta Money Bank vs. Photon Energy NV
Performance |
| Timeline |
| Moneta Money Bank |
| Photon Energy NV |
Moneta Money and Photon Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moneta Money and Photon Energy
The main advantage of trading using opposite Moneta Money and Photon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moneta Money position performs unexpectedly, Photon Energy 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 Photon Energy will offset losses from the drop in Photon Energy'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 |
| Photon Energy vs. Vienna Insurance Group | Photon Energy vs. Raiffeisen Bank International | Photon Energy vs. UNIQA Insurance Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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