Correlation Between Metro Bank and Moneta Money
Can any of the company-specific risk be diversified away by investing in both Metro Bank and Moneta Money 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 Metro Bank and Moneta Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metro Bank PLC and Moneta Money Bank, you can compare the effects of market volatilities on Metro Bank and Moneta Money 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 Metro Bank with a short position of Moneta Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Bank and Moneta Money.
Diversification Opportunities for Metro Bank and Moneta Money
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Metro and Moneta is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Metro Bank PLC and Moneta Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moneta Money Bank and Metro Bank 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 Metro Bank PLC are associated (or correlated) with Moneta Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moneta Money Bank has no effect on the direction of Metro Bank i.e., Metro Bank and Moneta Money go up and down completely randomly.
Pair Corralation between Metro Bank and Moneta Money
If you would invest 8,245 in Moneta Money Bank on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Moneta Money Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Bank PLC vs. Moneta Money Bank
Performance |
| Timeline |
| Metro Bank PLC |
| Moneta Money Bank |
Metro Bank and Moneta Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Bank and Moneta Money
The main advantage of trading using opposite Metro Bank and Moneta Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Bank position performs unexpectedly, Moneta Money 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 Moneta Money will offset losses from the drop in Moneta Money's long position.| Metro Bank vs. Panther Metals PLC | Metro Bank vs. First Class Metals | Metro Bank vs. Atalaya Mining | Metro Bank vs. CVS Health Corp |
| Moneta Money vs. mobilezone holding AG | Moneta Money vs. Universal Music Group | Moneta Money vs. Nordic Semiconductor ASA | Moneta Money vs. Metro Bank PLC |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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