Correlation Between Moneta Money and United States

Can any of the company-specific risk be diversified away by investing in both Moneta Money and United States 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 United States 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 United States Steel, you can compare the effects of market volatilities on Moneta Money and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneta Money and United States.

Diversification Opportunities for Moneta Money and United States

-0.59

Correlation Coefficient

Moneta Money  United States

Excellent diversification

The 3 months correlation between Moneta and United is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Moneta Money Bank and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of Moneta Money i.e., Moneta Money and United States go up and down completely randomly.

Pair Corralation between Moneta Money and United States

If you would invest  3,132  in United States Steel on October 26, 2024 and sell it today you would earn a total of  598.00  from holding United States Steel or generate 19.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.0%
Values	Daily Returns

Moneta Money Bank  vs.  United States Steel

Moneta Money Bank

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Moneta Money Bank are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Moneta Money is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

United States Steel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days United States Steel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, United States is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Moneta Money and United States

The main advantage of trading using opposite Moneta Money and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moneta Money position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.

The idea behind Moneta Money Bank and United States Steel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.