Correlation Between Moneta Money and Seche Environnement

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

Diversification Opportunities for Moneta Money and Seche Environnement

-0.75

Correlation Coefficient

Moneta Money  Seche Environnement

Pay attention - limited upside

The 3 months correlation between Moneta and Seche is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Moneta Money Bank and Seche Environnement SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seche Environnement 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 Seche Environnement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seche Environnement has no effect on the direction of Moneta Money i.e., Moneta Money and Seche Environnement go up and down completely randomly.

Pair Corralation between Moneta Money and Seche Environnement

Assuming the 90 days trading horizon Moneta Money Bank is expected to generate 0.0 times more return on investment than Seche Environnement. However, Moneta Money Bank is 274.93 times less risky than Seche Environnement. It trades about 0.07 of its potential returns per unit of risk. Seche Environnement SA is currently generating about -0.02 per unit of risk. If you would invest  8,225  in Moneta Money Bank on October 23, 2024 and sell it today you would earn a total of  20.00  from holding Moneta Money Bank or generate 0.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.0%
Values	Daily Returns

Moneta Money Bank  vs.  Seche Environnement SA

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 latest stock price uproar, may contribute to short-horizon losses for the private investors.

Seche Environnement

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Seche Environnement SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Moneta Money and Seche Environnement

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

The idea behind Moneta Money Bank and Seche Environnement SA 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.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.