Correlation Between SupplyMe Capital and Monks Investment
Can any of the company-specific risk be diversified away by investing in both SupplyMe Capital and Monks Investment 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 SupplyMe Capital and Monks Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SupplyMe Capital PLC and Monks Investment Trust, you can compare the effects of market volatilities on SupplyMe Capital and Monks Investment 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 SupplyMe Capital with a short position of Monks Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SupplyMe Capital and Monks Investment.
Diversification Opportunities for SupplyMe Capital and Monks Investment
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SupplyMe and Monks is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding SupplyMe Capital PLC and Monks Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monks Investment Trust and SupplyMe Capital 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 SupplyMe Capital PLC are associated (or correlated) with Monks Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monks Investment Trust has no effect on the direction of SupplyMe Capital i.e., SupplyMe Capital and Monks Investment go up and down completely randomly.
Pair Corralation between SupplyMe Capital and Monks Investment
Assuming the 90 days trading horizon SupplyMe Capital PLC is expected to generate 18.93 times more return on investment than Monks Investment. However, SupplyMe Capital is 18.93 times more volatile than Monks Investment Trust. It trades about 0.16 of its potential returns per unit of risk. Monks Investment Trust is currently generating about 0.13 per unit of risk. If you would invest 0.30 in SupplyMe Capital PLC on September 12, 2024 and sell it today you would earn a total of 0.11 from holding SupplyMe Capital PLC or generate 36.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SupplyMe Capital PLC vs. Monks Investment Trust
Performance |
| Timeline |
| SupplyMe Capital PLC |
| Monks Investment Trust |
SupplyMe Capital and Monks Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SupplyMe Capital and Monks Investment
The main advantage of trading using opposite SupplyMe Capital and Monks Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SupplyMe Capital position performs unexpectedly, Monks Investment 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 Monks Investment will offset losses from the drop in Monks Investment's long position.| SupplyMe Capital vs. Hochschild Mining plc | SupplyMe Capital vs. AcadeMedia AB | SupplyMe Capital vs. Coor Service Management | SupplyMe Capital vs. Hollywood Bowl Group |
| Monks Investment vs. G5 Entertainment AB | Monks Investment vs. Planet Fitness Cl | Monks Investment vs. One Media iP | Monks Investment vs. CVS Health Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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